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Why Many Small Businesses Fear the Passage of the Senate Tax Bill Into Law - Solo Small Firm Practice News

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Solo Small Firm Practice News


Posted on: Jan 2, 2018

Lucas Czarnecki, 23, runs a small design firm in Charlottesville, Virginia. Under the recently passed GOP tax bill, he says he is "petrified" for the future of the company, called If It Has Words.

"I could go out of business by 2025, as the disparity mounts year after year," Czarnecki says.

In particular, he's referring to the discrepancy between what large corporations would pay in taxes--once a permanent, 15 percent cut goes into effect--compared with the minor income deduction that some pass-through firms might claim. Meanwhile, under the current proposal, so-called "professional services"-- including the kind of outsourced design work he offers--would not qualify for the deduction to begin with. (See p.29 of the Senate bill, 22-A.) "I will be left behind as everyone else moves forward," Czarnecki says.

Read more here.

This article was submitted by Bryan D. Stoffel, Stoffel Law. If you would like to submit content or write an article for the Solo/Small Firm Committee, please email Kara Sikorski at ksikorski@indybar.org.

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