DelBene, LaHood Bill to Empower Small Business Receives Strong Industry Support
Congresswoman Suzan DelBene (D-WA) and Congressman Darin LaHood (R-IL) are pleased to announce overwhelming industry support for their bipartisan legislation – the Small Business Tax Fairness and Compliance Simplification Act (H.R. 1349).
In a letter, over 3,300 salon owners and beauty professionals expressed their support for H.R. 1349, which would reduce compliance burdens for tens of thousands of small businesses in the beauty industry.
This bicameral, bipartisan bill would extend the tax code’s Federal Insurance Contributions Act (FICA) tax tip credit — which is currently available only to the food service industry — to the tens of thousands of employer-based beauty service establishments where tipping is also customary. The FICA tax tip credit is part of an integrated compliance system that has been effective in ensuring the accurate reporting of tip income and reducing the tax gap. The credit acts as a reimbursement for the costs employers incur in accounting for tip income. By reducing the tax burdens for tipped employees as well as improving reporting of tip income, H.R. 1349 would provide equitable treatment to the beauty industry allowing them to support their employees and grow their businesses.
“I appreciate the support of beauty industry professionals for this commonsense, bipartisan legislation. Employees and employers in this industry – who are disproportionately women and minorities – rely on tips to support themselves and their families,” said DelBene. “This bill would ensure that they receive equitable treatment under the tax code and a fair, simple approach to tax administration.”
“I’m proud that our bipartisan, bicameral legislation has such strong support from the beauty and hair care industry,” said LaHood. “In an industry where most businesses are owned and operated by women and minorities, our bill will level the playing field and provide direct relief to millions of beauty care professionals who rely on tips. Our bill is commonsense, and I’ll continue to work to see it signed into law.”
“FICA Tip Tax Fairness is extremely important to the health and profitability of my small business. I run at a very minimal profit margin and any additional relief I can receive will allow me to give more benefits to my staff, upgrade my business and offset soaring medical bills. I am extremely forthcoming with all of my reporting and pay an exorbitant amount of taxes. Any relief will be welcomed and help to even out the playing field within our industry,” said Lisa Power, who owns a salon in Seattle.
The bill text can be found HERE. DelBene and LaHood first introduced this legislation during the 115th Congress. It was reintroduced in February 2019.