On Tuesday, the National Roofing Contractors Association (NRCA), put out a call to its members to oppose what they are calling “historic tax hikes.” The NRCA estimates that Congress’ actions could result in a $2 trillion tax increase.
Among the actions the NRCA is opposing is the reduction or repeal of the small business 199A tax deduction. This deducation was created by the 2017 Tax Cuts and Jobs Act and "allows non-corporate taxpayers to deduct up to 20% of their qualified business income (QBI), plus up to 20% of qualified real estate investment trust (REIT) dividends and qualified publicly traded partnership (PTP) income," according to the IRS FAQ sheet.
“These tax hikes are being marketed as ‘modest’ and a ‘middle ground.’ For roofing industry employers, they could be detrimental. They would raise taxes on your business when you earn a profit, when you try to sell it, and when you pass it on to your kids. This triple threat endangers the ability of companies like yours to compete and survive,” the NRCA stated in its member alert.
As part of its advocacy reach, NRCA stated that the association "worked to ensure the Tax Cuts and Jobs Act of 2017 lowered tax rates for all employers, enabling entrepreneurs to invest more capital in their businesses and create high-paying jobs. NRCA will ensure proper implementation of the Tax Cuts and Jobs Act, particularly provisions related to how the new tax rates apply to businesses organized as pass-through entities."
Per its mission statement, the NRCA “works to advance the roofing industry’s public policy agenda” and has a Washington, D.C. office. To learn more about NRCA’s alert, visit their advocacy page, which includes a form letter to send to your Congressperson.