Florida Sen. Bill Nelson pushes to give small business owners a tax break

Sen. Bill Nelson says his proposal will aid small businesses, and business owners support the plan.

TAMPA, Fla. - From Walmart to Amazon, you can get everything you need all at the same and even with just a click of a button.

But while large corporations make big bucks, small family-owned businesses are taking a hit in sales.

Small business owners are paying nearly 40 percent on their income taxes.

Large corporations, however, only pay 35 percent.

Florida Democratic Sen. Bill Nelson wants to change that, and area business leaders are on board.

Larry Madrid started his business Madrid Engineering Group 25 years ago, with just a few dollars in the bank. They specialize in structure foundation.

“I used some credit cards to buy my computer and buy some office space, then I went out to try and find some jobs,” says Madrid.

Today, he's working on projects like testing the foundation for homes near the massive sinkhole in Pasco County.
           
Madrid's business was also picked to begin working on the Lee Roy Selmon Expressway extension that will connect the toll road with the Gandy Bridge.

“The more successful you are the higher the rate goes. So, in a way you're being punished for being successful,” he says.

As his business grows, so does the amount of money he has to dish out to pay income taxes.

Madrid says hiring more employees along with buying new machinery would have been his goal. Instead, the money went to the government.

“Had I been able to do that, it's possible my business would be much stronger than it is today,” he says.

A small company that makes between $100,000 and $335,000 has a tax rate of 39 percent. If you make more, you pay 34 percent.

But Madrid says it's been a struggle to get there.

“It just doesn’t seem right,” he says.

Sen. Nelson met with a group of minority-owned business leaders like Madrid on Thursday afternoon in Tampa.

He spoke about the legislation he filed along with Sen. Susan Collins to provide small business owners throughout the country with some much-needed tax relief.

"The current law is not fair and I want to make it fair,” says Nelson.

Helping Hispanic business owners like Madrid reach their dreams of investing in their company, so it can grow.

President Donald Trump announced in April a tax reform plan that would help small business owners.

It would cut the income tax rate from 39.6 percent to 15 percent. So far, that plan has not been finalized.

 

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