Recognizing the importance of tax reform to the health of the economy, the 115th Congress passed H.R. 1, the Tax Cuts and Jobs Act, which was later signed into law.
This tax reform law takes the right steps to create an environment where small business job creation and expansion can flourish.
Of the approximately 30 million small businesses operating in the United States, nearly 90 percent are classified as pass-through entities.
The Tax Cuts and Jobs Act puts small businesses in the driver’s seat by creating a 20 percent deduction on “qualified business income”. In addition, this law also creates important safeguards to protect the new small business tax rate against abuse.
Small businesses also can take advantage of new rules that apply to writing off new and used equipment purchases.
As a result of the Tax Cuts and Jobs Act, more of the hard-earned resources made by Main Street companies, can be used for creating jobs and expanding operations in communities around the country.
These changes will make a difference for small businesses, their owners, and their employees.