For the first time in 30 years Congress is on the verge of passing comprehensive tax reform. Our new Small Business Tax Facts page on Stop the Tax Attack is setting the record straight on how the House and Senate versions of the Tax Cuts and Jobs Act work hard to revitalize America’s small-business communities. Small Business Tax Facts will keep you up to date on Congressional efforts to pass tax reform in 2017 while advocating for a simpler, fairer, tax code that encourages small business optimism and boosts the confidence of Americans looking to start new small businesses.
MYTH: Current tax reform proposals favor large corporations over small businesses.
- In many cases the current tax rate for small businesses is as high as 40%, but current proposals of the Tax Cuts and Jobs Act in the House and Senate cut the rate for S-Corps to as low as 25%. Overall, the U.S. economy will benefit when both corporations and small businesses get the tax cuts they deserve, as outlined in these proposals.
MYTH: Current proposals eliminate the deductions that most small business owners can take.
- Both the House and Senate bills expand Section 179, allowing small businesses to expense more in new equipment purchases. Current proposals raise deduction limits to $5 million, up from $500,000 for up to 5 years. This provision will encourage small-business owners to reinvest in and expand their businesses helping to create jobs and stimulate our economy in the long run.
To read more Small Business Tax Facts click here.