Business leaders turned out in force today to support a bill by Sen. James Moylan to roll back the business privilege tax increase passed last year amid a massive drop in government revenue.

The hotly debated tax increase was passed by the previous legislature because of the Trump tax cuts, and an expected plunge in government revenue. Realtor Chris Felix says small businesses also took a big hit.

"To go from 4 to 5 is a 25 percent increase in our cost and in our taxes," he said. "And that's a lot of money to bear. We ate it, we swallowed it with the understanding that it was six months. And then it changed on us."

It changed last August when senators decided to extend the increase indefinitely. And while some businesses passed on the hike to consumers, others like local businesswoman Liz Duenas had to absorb it.


"If we're taking a cut, I think the government should look at their expenses because the government isn't cutting, and I think everybody in this room can attest to that," she said.

Chamber Chair Joe Arnett agrees the government has done little to curb spending.

"This is an opportunity for our governor to assess finances, improve collections, and take advantage of public law 34-87 which provides the governor with complete authority to reorganize the government with the intent of saving up to $30 million," he said.

But some argue that businesses benefit from big corporate tax cuts. Triple J President Jeff Jones says that's true for some but not for many.

"A lot of businesses are breaking even so they don't participate in those savings," he said. "But they still have to pay the GRT. I think that's the important thing to understand is the Trump tax cut only works for you if you're making money."

And for those who say consumer prices won't be reduced even if the increase is rolled back, Arnett says the free market system will take care of it.

"Many business entities that increase their prices after the BPT increase may have to reduce the costs of their goods at some point if they wish to survive in this competitive market," he said.

Senator Moylan's bill calls for implementation by Oct. 1, the start of the new fiscal year. But an Adelup spokesperson says the governor has already made her position clear: Any rollback of the BPT should wait until they can evaluate the full impact of the Trump cuts, cuts that are estimated to cost the government $58 million in revenue in Fiscal Year 2020.