U.S. Senator Tammy Baldwin Introduces Tax Reform to Support Small Business Start-Up Growth
For three years in a row, Wisconsin has ranked last in business start-up activity
WASHINGTON, D.C. – For three years in a row, according to the Kauffmann Index, Wisconsin has ranked last in business start-up activity. Kaufmann’s 2017 report notes that in the last year, Wisconsin experienced a decrease in start-up activity and no growth in entrepreneurship.
“Wisconsin has a proud history of entrepreneurship and innovation, but recent reports show that we need to do more to support our Made in Wisconsin start-ups,” said Senator Baldwin. “Wisconsin’s small businesses need a tax break and that’s what I’m working for. Small businesses are the engines of our economy and if we provide tax relief to start-ups, we can free up investments to create jobs and grow our economy.”
“The easier we can make it for entrepreneurs to create start-ups and succeed, the better,” said Joe Kirgues, Co-founder of gener8tor. “With many start-up founders living paycheck-to-paycheck, the Support Our Start-Ups Act could be the difference between a successful business or a start-up having to close their doors for good.”
“Senator Baldwin’s Support Our Start-Ups Act will help ease the personal financial burden placed on entrepreneurs who are the backbone of America’s economic growth engine,” said Matt Cordio, Co-founder & President of Startup Milwaukee.
“More and more we see that reducing barriers to start-up businesses provides great gains for all – new products, services, innovations and increased local and independent businesses in communities too,” said Wendy K. Baumann, President/CVO, Wisconsin Women’s Business Initiative Corporation (WWBIC). “This start-up bill specifically makes it easier from day one to start a new business. WWBIC celebrates 30 years of impact in 2017 and approximately 70% of the clients we serve are start-ups.”
The Support Our Start-Ups Act will:
- Increase the start-up deduction for new small businesses from $5,000 to $20,000, allowing small business owners to put money back into their business sooner, creating jobs and growing our economy.
- Increase the deduction’s phase-out threshold from $50,000 to $120,000; and,
- Extend the start-up tax deduction to organizational expenditures to ensure businesses can benefit regardless if they are organized as a partnership, LLC or corporation.
Text of the legislation is available here.