Senate Tax Bill Levels the Playing Field for American Small Businesses

This Small Business Saturday, the Finance Committee Is Ensuring Small Businesses Can Compete

This Saturday marks Small Business Saturday, where American consumers head to Main Street to shop and support their local businesses. These engines of our economy are capable of creating more than 1 million new jobs each year and employ about half of the American workforce. That’s why Congress is working to provide tax relief to these small businesses and help level the playing field for them. In fact, the Senate Finance Committee just advanced a comprehensive tax plan that aims to create a friendlier and fairer environment for small business.

Here’s how the bill will help Main Street grow:

• A simple and easy-to-administer tax deduction for pass-through businesses of all sizes, like sole proprietorships, S corporations, and partnerships, allowing more small businesses to grow, invest, hire new workers and increase wages while also preventing abuse of the reformed system;

• Enhanced Section 179 expensing to promote business investment and growth;

• Enhanced cash accounting, allowing more businesses to use the simple cash-basis accounting method; and

• Additional tax relief through lower individual income tax rates for pass-through businesses owners who report their earnings on their individual tax returns.

 Here’s what stakeholders are saying about the bill:

• The National Federation of Independent Business (NFIB) CEO – The Senate tax bill, “will provide much needed tax relief to enable small businesses to grow and create jobs.”

• National Retail Federation President and CEO – “Tax reform is the key to increased prosperity that small businesses…have all been waiting for for more than a generation. This is about jobs, wages and America’s future.”

 Learn more about the Senate Tax Cuts and Jobs Act at finance.senate.gov/taxreform.

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