Sen. Ron Johnson, R-Wis., continues his efforts for small businesses in the GOP tax reform conferencing between the House and Senate, saying the "Joint Committee on Taxation is completely in La La Land" on potential revenue losses that will "hemorrhage" from federal tax rolls.
"I'm really concerned that if we don't close that widened disparity between pass-throughs and C corps, we will incentivize pass-throughs to convert to C corp status, and we will hemorrhage revenues of the federal government," Sen. Johnson told "The Cats Roundtable" on AM 970-N.Y. "A lot of my colleagues aren't really focusing on that, and the Joint Committee on Taxation [JCT} is completely in La La Land denying that potential reality."
Sen. Johnson has been an outspoken critic of the Senate GOP Tax Cuts and Jobs act on behalf of small "pass-through" businesses having a tax rate competitive with corporations, despite voting yes on the Senate bill which is currently in conference with the plan the House passed before Thanksgiving.
"If we don't fix this problem we will see a really dramatic loss of revenue as they convert to C corps," Johnson warned host John Catsimatidis.
"We are all dedicated to getting this thing right. This is the sausage-making process, John. It's not pretty. But I'm really confident we will have strong pro-growth tax reform when this all gets passed."
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