ALEXANDRIA, Va. (November 14, 2017)—The National Community Pharmacists Association is cheering the addition of language in the House GOP tax proposal that would provide small business pharmacy owners tax relief as pass-through entities under current law. U.S. House Ways and Means Committee Chairman Kevin Brady (R-Texas) amended the proposed Tax Cut & Jobs Act to address concerns raised by NCPA and other groups representing small businesses.
NCPA CEO B. Douglas Hoey, Pharmacist, MBA, issued the following statement:
“NCPA strongly supports House Ways and Means Chairman Brady’s amendment in the tax relief bill. It will bring substantial relief to the 22,000 independent community pharmacies we represent. In an August letter, we urged Congressional leadership to address tax fairness for small business owners. Unlike large corporations, many small businesses are treated as pass-through entities under current law and are taxed at the higher personal income rate.
“Brady’s amendment creates a new 9 percent tax rate for the first $75,000 of income for a married active business owner with less than $150,000 in pass-through business income. This is a meaningful improvement from the original 12 percent rate in the tax proposal. The amendment has also been endorsed by the National Federal of Independent Businesses.
“Independent community pharmacies employ thousands of Americans who help improve the health of millions of patients. Unfortunately, due to low reimbursements for the prescriptions we dispense, such as with the proliferation of DIR fees, pharmacies operate with slim profit margins. The Brady amendment will relieve some of that financial strain and allow us to invest more into our businesses. We urge the House of Representatives to back this provision as it considers the legislation this week. We encourage the Senate to include a similar provision in its tax reform proposal, and urge its inclusion in any final legislative compromise between the two chambers.”
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