U.S. Companies: Make Your Voice Heard On PPP Tax Deductibility Issue
As last week’s Connecting the Dots reported, the Metals Service Center Institute (MSCI) and more than 550 other national and state trade associations recently sent a letter to House and Senate leaders asking lawmakers to avoid a $120 billion tax hike on small businesses by clarifying correct tax treatment for U.S. Small Business Administration Paycheck Protection Program (PPP) loans.
Now, MSCI members can easily make their voices heard on this matter. The National Association of Wholesalers has developed a “Take Action” issue alert urging all businesses concerned about this issue to contact their U.S. representative and senators asking them to act on PPP tax legislation before the end of this month. Click here to send a letter.
Without the legislation, businesses that took PPP loans could incur a tax increase of up to 37 percent when they file their taxes for the calendar year 2020.
In a column that ran last week in the Houston Chronicle, U.S. Sen. John Cornyn (R-Texas) agreed with MSCI and other business organizations, arguing it is time for Congress to safeguard small businesses’ tax deductions. Click here to read the column.
Also last week: the U.S. Small Business Administration updated its Frequently Asked Questions regarding the PPP. The changes, available here, include new information on loan forgiveness.