|
|
|
House Committee on Small Business Holds Hearing on the Role of Franchises in the American Economy and Small Business Ecosystem
WASHINGTON, D.C. – Today, Chairman Roger Williams (R-TX) led a full House Committee on Small Business hearing titled “A Small Part in a Big Company: Examining the Power of Franchising in the American Economy.” The purpose of this hearing was to examine the role franchises play in the small business ecosystem and the American economy, as well as assess the issues franchisees face.
“Small businesses spur job creation, community growth, and economic success, but starting and operating a small business takes hard work, risk, and sacrifice,” said Chairman Williams. “The franchise model offers support and guidance to entrepreneurs. This Committee is working to lower taxes, cut burdensome regulations, and extend the Tax Cuts and Jobs Act to protect Main Street America.”
---
Watch the full hearing here.
Below are some key excerpts from today’s hearing:
Rep. Finstad: “I appreciate all of the risks that you’ve taken and the story that you talked about in regard to your family, and I think that’s great. So, you mentioned that your hope is that your newly engaged daughter, your newly graduated daughter, was going to come into the family business. I’m a small business owner myself. I have seven children, so it’s something that’s on my mind quite a bit. What are the biggest challenges that you face or that you are facing in regard to bringing the next generation into business?” Ms. Beaudoin: “In regard to bringing her in, one of the concerns we have, and we haven’t addressed it yet, is with the estate tax and what that’s going to mean for her taking over our business and even for me taking over for my parents–my parents are 50 percent owners in my business–and what the business that I already own, what I am going to have to pay on the estate tax to just acquire the rest of my business. So, I would say that’s a big concern. Another one is just around the administrative burden that I’ve had to acquire lately.”
Rep Downing: “Republicans in Congress are fighting to ensure small businesses, including franchisees, are unburdened by crippling taxes and regulations you. So, one of our main priorities is to extend the Tax Cuts and Jobs Act, the TCJA, and its small business provisions. So, I’m going to start with Mr. Wright. In your testimony, you highlight the importance of TCJA Section 199A deduction, which allows pass-through business owners to deduct 20 percent of business income from their taxes. So, can you explain, in further detail, how the Section 199A deduction has specifically benefited your business’ operations?” Mr. Wright: “Absolutely. Anything within our franchise process, or any franchise process, the more capital that can be entered, introduced, or interjected into the business is going to fuel growth. It’s going to fuel growth for building new locations. It’s going to fuel growth for expansion. It’s going to fuel growth for higher wages and benefits. So, that tax deduction puts more capital into the hands of the franchise owners.”
Rep. Meuser: “The Ways and Means Committee yesterday marked up their portion of the One Big, Beautiful Bill. We’re delivering critical tax relief to franchise businesses and small businesses. The bill has many provisions in it, such as 100 percent bonus depreciation, Section 199A small business deduction, R&D tax credits, etc. Are these provisions helpful or critical? On a scale of one to ten, how important are they to your growth and sustainability, Mr. Cross?” Mr. Cross: “Very important, Congressman. Thank you for the question. Yes, any additional funds that we can have to reinvest back into our businesses–in my case, we look at vehicles and additional labor to go out and do more work–are always much appreciated.” Rep. Meuser: “Do others agree, Mr. Wright?” Mr. Wright: “100 percent. Yes, exactly. Being able to take that and invest back into the business is critical to the growth of small businesses.” Ms. Beaudoin: “On a scale of one to ten, I give it about a 25.”
“Small businesses spur job creation, community growth, and economic success, but starting and operating a small business takes hard work, risk, and sacrifice,” said Chairman Williams. “The franchise model offers support and guidance to entrepreneurs. This Committee is working to lower taxes, cut burdensome regulations, and extend the Tax Cuts and Jobs Act to protect Main Street America.”
---
Watch the full hearing here.
Below are some key excerpts from today’s hearing:
Rep. Finstad: “I appreciate all of the risks that you’ve taken and the story that you talked about in regard to your family, and I think that’s great. So, you mentioned that your hope is that your newly engaged daughter, your newly graduated daughter, was going to come into the family business. I’m a small business owner myself. I have seven children, so it’s something that’s on my mind quite a bit. What are the biggest challenges that you face or that you are facing in regard to bringing the next generation into business?” Ms. Beaudoin: “In regard to bringing her in, one of the concerns we have, and we haven’t addressed it yet, is with the estate tax and what that’s going to mean for her taking over our business and even for me taking over for my parents–my parents are 50 percent owners in my business–and what the business that I already own, what I am going to have to pay on the estate tax to just acquire the rest of my business. So, I would say that’s a big concern. Another one is just around the administrative burden that I’ve had to acquire lately.”
Rep Downing: “Republicans in Congress are fighting to ensure small businesses, including franchisees, are unburdened by crippling taxes and regulations you. So, one of our main priorities is to extend the Tax Cuts and Jobs Act, the TCJA, and its small business provisions. So, I’m going to start with Mr. Wright. In your testimony, you highlight the importance of TCJA Section 199A deduction, which allows pass-through business owners to deduct 20 percent of business income from their taxes. So, can you explain, in further detail, how the Section 199A deduction has specifically benefited your business’ operations?” Mr. Wright: “Absolutely. Anything within our franchise process, or any franchise process, the more capital that can be entered, introduced, or interjected into the business is going to fuel growth. It’s going to fuel growth for building new locations. It’s going to fuel growth for expansion. It’s going to fuel growth for higher wages and benefits. So, that tax deduction puts more capital into the hands of the franchise owners.”
Rep. Meuser: “The Ways and Means Committee yesterday marked up their portion of the One Big, Beautiful Bill. We’re delivering critical tax relief to franchise businesses and small businesses. The bill has many provisions in it, such as 100 percent bonus depreciation, Section 199A small business deduction, R&D tax credits, etc. Are these provisions helpful or critical? On a scale of one to ten, how important are they to your growth and sustainability, Mr. Cross?” Mr. Cross: “Very important, Congressman. Thank you for the question. Yes, any additional funds that we can have to reinvest back into our businesses–in my case, we look at vehicles and additional labor to go out and do more work–are always much appreciated.” Rep. Meuser: “Do others agree, Mr. Wright?” Mr. Wright: “100 percent. Yes, exactly. Being able to take that and invest back into the business is critical to the growth of small businesses.” Ms. Beaudoin: “On a scale of one to ten, I give it about a 25.”
Are you looking for a shipping solution? Maybe you need to change freight carriers? Find out what the hard working and reliable people at Team Worldwide can do over land, sea and air