News Releases - 2017

NCPA Applauds Passage of Small Business Tax Relief

by NCPA | Dec 20, 2017

ALEXANDRIA, Va. (Dec. 20, 2017) — The National Community Pharmacists Association applauds provisions of the tax reform legislation recently passed by Congress that would bring needed tax relief to small business independent pharmacy owners. The Tax Cuts and Jobs Act better aligns the tax rates paid by small businesses to those paid by corporations and removes an obstacle to passing a small business on to future generations by doubling the estate tax deduction.

NCPA CEO B. Douglas Hoey, Pharmacist, MBA, issued the following statement:

"NCPA supports the provisions of the Tax Cuts and Jobs Act that reduce the tax burden on small businesses. 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. We are pleased that the final bill passed today addresses this. Unlike large corporations, many small businesses are treated as pass-through entities under current law and are taxed at the higher personal income rate. This bill makes meaningful improvements to the tax code by better aligning the tax rate paid by small businesses with the corporate tax rate. It also has the endorsement of the National Federation of Independent Business, which is noteworthy.

"For independent pharmacy owners who are experiencing decreased reimbursement rates for medications and the proliferation of other fees assessed long after the pharmacist has served the needs of his patient, this reduced tax burden will relieve some of the financial strain and allow them to invest more in their business to achieve even greater patient health outcomes.

"This tax bill also removes burdens in succession planning. Like many small businesses, independent pharmacy is often a family affair with children following in the footsteps of their parents. There are countless examples of independent pharmacies being owned and operated by a single family through multiple generations. By doubling the estate tax exemption, this legislation will encourage such family traditions and ownership to continue, and we enthusiastically support its inclusion."

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The National Community Pharmacists Association (NCPA®) represents the interests of America's community pharmacists, including the owners of more than 22,000 independent community pharmacies. Together they represent an $80 billion health care marketplace and employ more than 250,000 individuals on a full- or part-time basis. To learn more, go to www.ncpanet.org, visit facebook.com/commpharmacy, or follow NCPA on Twitter @Commpharmacy.