Reduction in state income tax rate highlights victory for small businesses
The regular legislative session ran from January 17 to March 3, and in the end NFIB helped obtain three big victories for Utah small businesses.
- Reduced the income tax rate from 4.85% to 4.65%, saving Utahans $400 million
- Helped raised the earned income tax credit from 15% to 20% of the federal tax credit
- Blocked efforts to limit access to capital for certain business types based on artificial and subjective criteria (Social Credit Scores).
The importance of reducing the income tax rate cannot be overstated, because personal – not corporate – tax rates are more important to small firms. Eighty-five (85) percent of small employers are structured as pass-through entities (S corporations, limited liability companies, sole proprietorships or partnerships) that pay taxes on their business income at the individual rate. Most small businesses do not pay a corporate tax.
