Business Group Leaves Door Open for New Small Business Tax Credit

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Jan. 22 — The chairman of a lobbying group for dozens of U.S. corporations isn't dismissing the idea of a new tax credit to help advance a business-oriented tax overhaul.

John Engler, president of the Business Roundtable and a former Republican governor of Michigan, told the Senate Finance Committee Jan. 22 that a general tax credit for small businesses is one of many “very intriguing” concepts that need to be discussed if Congress is to revamp business taxes in a way that doesn't leave passthrough businesses—taxed on the individual side of the tax code—with sharply higher taxes than their counterparts pay in corporate rates.

Engler neither endorsed nor rejected a new tax credit, in response to a question from Sen. Ron Wyden (D-Ore.), the committee's ranking Democrat. The corporate side of the tax code shouldn't be used to subsidize changes on the individual side, nor vice versa, he said.