Working Families Tax Cuts Create Stability for Small Business

Working Families Tax Cuts Create Stability for Small Business

Tax code permanence encourages economic growth this National Small Business Week

Washington, D.C.-National Small Business Week celebrates the millions of entrepreneurs who turn their ideas and hard work into the products, services and jobs that lift up communities. In Idaho, over 200,000 small businesses employ over 56 percent of workers, forming the backbone of the state's economy. Those businesses can now operate and plan with new confidence, thanks to the Working Families Tax Cuts law championed by U.S. Senate Finance Committee Chairman Mike Crapo (R-Idaho). The law restores and makes permanent a variety of policies that support job creators, workers and their families.

"Tens of millions of businesses rely on the pro-growth policies built into the Working Families Tax Cuts," said Crapo. "Now, with these enhanced provisions permanently added to the tax code, small businesses can focus on serving their communities instead of costly and time-consuming planning and compliance tasks."

Key wins:

• Makes permanent the 20 percent small business deduction, increasing confidence for over 25 million small businesses
• • The deduction is expected to create 1.2 million jobs annually and boost small-business GDP by $750 billion over the next decade
• Doubles Section 179 expensing, used to make capital investments, and raises the phase-out threshold
• Restores full expensing for domestic research and development, freeing up $100 billion of research expenses for tens of thousands of small businesses
• Makes permanent the expanded Opportunity Zone program and incentivizes investment in rural areas
• Permanently doubles the death tax exemption, sparing family-run businesses from costly planning and tax burdens that make it difficult to pass operations from one generation to the next
• Increases the 1099-MISC and 1099-NEC reporting thresholds, reducing paperwork burdens for job creators and workers

What they are saying:

"Of all the great provisions in the WFTC, the policies created and extended to help small businesses are the most forward thinking and bring the biggest bang for the taxpayer's buck. When we see strong economic growth in the next few years, be sure to look back at this law fondly, as it provided the foundation for a strong American economy for years to come." - National Taxpayers Union Senior Policy Manager David Timmons

"78% of small businesses are already benefiting from at least one provision in the law, and an overwhelming 92% describe their current condition as stable or growing. This is what pro-growth tax policy is supposed to achieve." - Small Business & Entrepreneurship Council President & CEO Karen Kerrigan

Click HERE to learn more about how the Working Families Tax Cuts set up small businesses for success.

Click HERE to learn more about the Finance Committee provisions in the Working Families Tax Cuts.