Phoenix, AZ (May 17, 2012) - The Professional Beauty Association (PBA) held its annual Lobby Day on May 9, 2012 in Washington D.C. More than seven teams of volunteer advocates from all sections of PBA’s membership converged on Capitol Hill to send a clear message to members of Congress that it is time to support and pass the Small Business Tax Equalization and Compliance Act (S974 / HR1957).
Passage of the Bill, commonly known as the FICA Tip Tax Credit, would provide business owners in the salon industry, the nation’s second largest tipped industry, with a dollar-for-dollar tax credit on FICA (Social Security and Medicare) taxes paid on employee tips.
A similar tax credit has been extended to the restaurant industry for nearly two decades. The passage of S974 / HR1957 would promote tax fairness, improve tip reporting, and help stimulate growth in the professional beauty industry: salon/spa owners would have an average of $11,000 additional revenue annually to reinvest in their businesses and employees in the form of healthcare benefits, education, and capital improvements. Employee wages and tips would not be affected.
“The Small Business Tax Equalization and Compliance Act would give much needed relief to the business establishments within the beauty industry that are responsible for paying FICA taxes on employee tips. PBA’s Lobby Day provides members the opportunity to express their support for this legislation and ask their members of Congress to sign onto the bill,” said PBA Director of Government Affairs, Myra Irizarry.
With bipartisan support, S974 / HR1957 were introduced by Senators Olympia Snowe (R – ME) and Mary Landrieu (D – LA) and House of Representative members Sam Johnson (R – TX) and Shelley Berkley (D – NV).
In addition to the Capitol Hill visits, PBA and a team of industry volunteers also participated in the highly attended Welcome to Our World (WTOW) event sponsored by the Professional Beauty Federation. WTOW is a favorite annual event on Capitol Hill and creates a salon environment in the famed Cannon Caucus Room where members of Congress and their staff learn more about the beauty industry and its role in the U.S. economy.
To tell your Congressional representative that you support the Small Business Tax Equalization and Compliance Act, visit www.probeauty.org/advocacy. For more information contact PBA’s Government Affairs team at 800.468.2274.