NCPA Offers Tax Reform Input as Congress Prepares Legislation
ALEXANDRIA, Va. (Sept. 5, 2017) As Congress begins to tackle tax reform, the National Community Pharmacists Association has sent a letter to Sen. Orrin Hatch (R-Utah) and Rep. Kevin Brady (R-Texas) urging the tax rates for small businesses and corporate entities be aligned. Hatch and Brady are chairs of the Senate Finance and House Ways & Means Committees, respectively.
That recommendation mirrors a joint statement from the White House and congressional leaders supporting "a lower tax rate for small businesses so they can compete with larger ones and a lower rate for all American businesses so they can compete with foreign ones."
Under current tax law, many of the 22,000 independent pharmacies NCPA represents are treated as "pass-through" small businesses, as opposed to corporate entities. As a result, the revenue these pharmacies generate is designated as personal income, resulting in a higher tax rate.
"We believe there must be tax parity in order for small businesses to invest in the future and for job creation to flourish," the letter said. "In the case of independent pharmacies, such tax parity would allow them to expand to provide additional patient services to improve health in their communities.
"By embracing the important principle that all businesses, both small and large, should be taxed similarly, tax reform can be an engine that grows the economy and creates good jobs. It is our hope this will be a priority in finalizing this legislation."