AMAC Supports Bill to Strengthen Small Businesses

June 5, 2023

The Honorable Darin LaHood
16th Congressional District of Illinois
1424 Longworth House Office Building
Washington, D.C. 20515

Dear Representative LaHood,

On behalf of the 2.1 million members of AMAC, the Association of Mature American Citizens, including over 7,100 members in IL-16, I write to offer our support for H.R. 45, the “Small Business Tax Fairness and
Compliance Simplification Act.”

It is not ideal that tips currently granted to food service servers and salon stylists are considered income paid by an employer; for which income and Federal Insurance Contributions Act (FICA) taxes are levied. It is further unsatisfactory that employers in the salon industry, where tipping is just as customary as in the food service industry, must pay the employer portion of the FICA tax on the tips their employees earn without receiving the compensating tax credit for which employers in the food service industry are eligible. It is an unfortunate oversight that the salon industry, and other industries where tipping is common, were overlooked when this tax credit was originally implemented.

Your concise legislation corrects this oversight in the cause of the salon industry, allowing employers to claim the same tax credit available as in the food service industry. The benefits of extending this tax credit to salon employers improves the general welfare of small business in our country. Whereas small businesses are the backbone of our economy, we would do well to pass this legislation and allow these businesses to grow, thrive, and contribute to our economy on a larger scale.

Thank you, Representative LaHood, and your cosponsors, for promoting fairness and free enterprise for small businesses in the United States. AMAC is pleased to offer our organization’s support for your efforts.

Sincerely,
Bob Carlstrom
President
AMAC Action