With this legislative session getting off to a fast start, there are numerous bills that represent threats and opportunities. A prime example of both is the Tax Reform package. Much media ink has been devoted to speculating on what will be in the package and how it will affect various demographics. Long before the session, the leadership team of Turn Key has been meeting with leaders in the Jindal administration and numerous small business groups to make sure the interests of our clients are protected. As a partner and the CFO of Turn Key, I also serve as chairman of the Small Business Council (SBC) of the Baton Rouge Area Chamber (www.brac.org), a member of the BRAC board’s Executive Committee, chair-elect of the Louisiana Leadership Council of the National Federation of Independent Business (www.nfib.org), and a member of the state's Small Business Advisory Council. In these roles I work to protect the interests of small business, provide resources to small business, and build coalitions with other business groups to amplify our impact.
There are numerous provisions of the Tax Reform package that will affect small business. A few of the positive pieces will centralize tax collection(making it easier for businesses to collect and remit sales tax), eliminate corporate income tax, eliminate inventory tax, and eliminate franchise tax. Those are all very small business-friendly. However, there is also a potential down-side in the expansion of sales tax to include many of the services that we provide our clients. Repair services are already taxable, but we believe that taxing consulting services will add an unnecessary burden on our clients.
Turn Key has not raised our service rates in many years, despite constant increases in operating cost—especially with the rising costs of the healthcare benefit package we offer our valued employees and the increase in fuel and insurance costs. Although we are being forced to seriously consider a moderate price increase on some services, we are also evaluating the potential increased tax burden on our clients. And more importantly we are fighting FOR beneficial legislation and AGAINST harmful legislation. It’s all a part of our mission to serve YOU, our valued clients and our community.
If you have concerns about a particular piece of legislation and/or want to know how to make an impact, please contact John Overton at 225-751-4444.