SBE Council Statement in Support of Ways and Means Reconciliation Bill

By SBE Council at 12 May, 2025, 8:34 pm

NEWS

For Immediate Release

Washington, D.C. - In response to the House Ways and Means Committee reconciliation bill unveiled by Chairman Jason Smith (R-Mo.) today, Small Business & Entrepreneurship Council (SBE Council) President & CEO Karen Kerrigan issued the following statement:

"The One, Big Beautiful Bill rolled out by Chairman Smith today offers a powerful mix of relief and incentives that will supercharge American entrepreneurship, investment, innovation, and opportunity. It will bolster small business competitiveness and growth, and boost economic development in every corner of the country."

"Making permanent the individual tax rates and small business deduction - the latter of which includes a proposed increase from 20% to 23% - will help small business owners make the type of game-changing investments in equipment, technology and human capital that build competitive businesses and resilient local economies. The return of bonus depreciation and immediate R&D expensing will galvanize innovative growth across all sectors of the economy, and accelerate U.S. technological dominance at a time when other nations - namely China - are making massive gains in AI and advanced technologies. It must be remembered that entrepreneurs and small firms are responsible for the lion's share of U.S. innovations and creative breakthroughs. Access to capital and investment incentives are critical in supporting these small businesses that fuel American vibrancy."

"To that end, we are pleased that Opportunity Zones are extended and enhanced via this package. The success of the incentive is well documented, and there are many areas across the country that will benefit from investments that help kick-start the development of forgotten rural Main Streets or urban and rural areas alike that have the potential for transformation and redevelopment."

"The bill also addresses a long-standing pain point for small business owners - the rising cost of health care and the need for affordable choices in coverage. Long overdue improvements are made to health savings accounts (HSAs) that promote flexibility, savings for health care needs, and expanded eligibility. Moreover, the bill codifies Individual Coverage Health Reimbursement Accounts (ICHRAs) - a pragmatic option for small businesses - and provides small employers with a tax credit in support of this affordable arrangement. In support of MAHA efforts that are working to address the root causes of chronic disease, high health care costs, and needed lifestyle changes, the bill supports proactive steps that Americans are taking to live healthy lives by allowing a modest amount of HSA funds to be used for fitness and physical exercise. Supporting the core components of health and wellness - which includes physical movement - is important to physical and mental health, and government must find more ways to encourage healthy choices to lower costs, improve U.S. competitiveness across many areas, and help our fellow citizens enjoy healthy lives and lifespans."

"We are pleased that the bill increases and makes permanent the death tax exemption, modernizes a very outdated threshold for income reporting from $600 to $2,000, and repeals the intrusive 1099-K income reporting rule that was more about creating massive amounts of costly and useless paperwork for government rather than improving taxpayer compliance."

"SBE Council is grateful to Chairman Smith and committee members for putting forward a powerful bill that benefits all taxpayers and every American."

CONTACT:

KAREN KERRIGAN: kkerrigan@sbecouncil.org

SBE Council is a nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For more than 30 years, SBE Council has advanced a range of private sector and public policy initiatives to strengthen the ecosystem for strong startup activity and small business growth.

Visit www.sbecouncil.org for additional information. X: @SBECouncil

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