Companies Nationwide Advocate for Tax Policies Favoring Economic Expansion
In a significant move that has positively impacted small businesses and local communities across the United States, the Tax Cuts and Jobs Act (TCJA) was passed by Congress in 2017. This landmark legislation, backed by recent legislation making many of its tax cuts permanent, has provided crucial and lasting benefits for small businesses, enabling them to invest in growth, innovation, workforce development, and community prosperity.
John Boyer, CEO of KVG in Gettysburg, Pennsylvania, is one such example. The 20% rate on taxes attracted his company to invest more in the United States, enabling them to add ten jobs and continue running operations successfully.
The TCJA has brought about several key effects on small businesses. Permanent tax relief, as solidified by the One Big Beautiful Bill Act (OBBBA) of 2025, provides long-term certainty for small businesses to plan investments, growth, and succession without fearing future tax law changes.
The TCJA also introduced the Section 199A deduction, offering small businesses a 20% deduction on qualified business income. This deduction, made permanent by the 2025 legislation, benefits more than 25 million businesses, supporting over 2.6 million jobs and contributing billions annually to wages and GDP.
Additionally, the TCJA allowed immediate expensing of Research & Development (R&D) costs rather than amortizing them over several years, encouraging innovation and technological advancement in small businesses. The law also includes 100% bonus depreciation for new machinery and equipment, allowing businesses to immediately deduct the full cost instead of spreading it over time.
Lower corporate tax rates and expanded deductions, such as the standard deduction, have also benefited small business owners who file taxes through individual returns.
The positive effects of the TCJA are not limited to small businesses. By lowering tax burdens and encouraging reinvestment, small businesses have expanded their workforce and increased compensation packages, stimulating local economies. The tax relief fosters investment, innovation, and business longevity in communities, which in turn supports economic vitality and resilience in local markets.
Estate tax exemption provisions ensure family-owned small businesses can be passed on to new generations without being taxed heavily, preserving local business continuity and community economic stability.
In conclusion, the TCJA provisions, reinforced by recent legislation, provide crucial and lasting tax benefits that empower small businesses, enabling them to invest in growth, innovation, workforce development, and community prosperity throughout the United States. However, many provisions in the TCJA will expire at the end of 2025, potentially leading to the largest automatic tax increase in American history. The U.S. Chamber is conducting a comprehensive education and advocacy campaign to maintain a pro-growth tax code, advocating for a current-policy baseline to deliver permanent tax relief.
- The Tax Cuts and Jobs Act (TCJA) has significantly impacted various small businesses, providing them with the confidence to invest, innovate, and grow, as seen in the case of John Boyer's KVG in Gettysburg, Pennsylvania.
- The TCJA, backed by the One Big Beautiful Bill Act (OBBBA) of 2025, offers permanent tax relief, offering small businesses long-term certainty for investments, growth, and succession.
- The TCJA's Section 199A deduction grants small businesses a 20% deduction on qualified business income, benefiting millions of businesses, creating jobs, and contributing significantly to the economy.
- The TCJA encourages innovation and technological advancement by allowing immediate expensing of Research & Development (R&D) costs and providing 100% bonus depreciation for new machinery and equipment.
- Lower corporate tax rates and expanded deductions, like the standard deduction, have also positively impacted small business owners, particularly those who file taxes through individual returns.
- Beyond small businesses, the TCJA stimulates local economies by expanding workforce and increasing compensation packages, fostering a culture of investment, innovation, and business longevity.
- Estate tax exemption provisions ensure family-owned small businesses can be passed on to new generations without being taxed heavily, preserving local businesses and economic stability.
- The U.S. Chamber of Commerce is leading a comprehensive education and advocacy campaign to maintain a pro-growth tax code, advocating for a current-policy baseline to deliver permanent tax relief.
- Many provisions in the TCJA will expire at the end of 2025, potentially leading to the largest automatic tax increase in American history.
- Personal-finance and policy-and-legislation news outlets cover the ongoing policy discussions concerning the TCJA, monitoring its impact on small businesses, commerce, and the broader economy.
- Small businesses investing in their growth and communities have a profound influence on economic growth, prosperity, and overall general news topics in the United States.
