Trump-era tax cuts could become permanent


release date: May 2, 2024Last update: May 3, 2024by Sean Hessingerin Small business news0

Business leaders want to make permanent Trump-era tax cuts that benefit small businesses.

The cuts expire in 2025 unless Congress passes an extension. However, President Joe Biden take an oath He would likely veto such a bill if asked to sign it.

“Now, President Biden’s budget proposal would cut taxes on working families and reduce the budget deficit by trillions of dollars over 10 years by giving the wealthy and large corporations their share of the burden, and would reduce taxes on working families and the budget deficit by trillions of dollars over 10 years. of people will not pay a penny in new taxes,” White House fact sheet. state.

Still, business leaders say the tax cuts have benefited many small business owners who manage to make less than $400,000.

The Tax Cuts and Jobs Act of 2017 includes a small business deduction. This deduction allows small businesses to deduct up to 20% of their income if they qualify.

The law also allows deductions for new equipment and other qualified assets. Supporters argue that the deduction benefited not only large corporations but also fledgling sole proprietors and partnerships.

For example, entrepreneur Michael Irvin recently told the House Ways and Means Committee how layoffs have helped his five-year-old startup.

Founded by Irvin coal river coffee company Located in St. Albans, West Virginia. He says his business has benefited greatly from the cuts in his employment law, Kentucky Lantern. report. The company currently has approximately 12 employees.

“After the passage of the Tax Cuts and Jobs Act, LLCs and other pass-through businesses like mine were able to benefit from the newly created small business deduction, also known as the 199(a) deduction. The regulations now allow you to deduct up to 20% of your business income so you can invest in your business, your employees, and your community,” Irvin said.

Critics say the deduction unfairly benefits wealthy corporations and increases the federal debt.

Former President Donald Trump is likely to approve an extension of the tax cuts if elected in November.

Image: Depositphotos

Shawn Hessinger is the Editor-in-Chief of Small Business Trends and has been with the team for 17 years. He is a professional journalist with over 20 years of experience in traditional and digital media in trade publications and news sites. He is a member of the Society of Professional Journalists and has served as a beat reporter, columnist, editorial writer, bureau chief and managing editor for Berksmont Newspapers.

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