Fact check: The Working Families Tax Cuts supercharge small businesses

You’ve probably heard the myth that the Working Families Tax Cuts in the reconciliation bill that Republicans passed this summer are bad for small businesses, or that they only benefit the uber-wealthy.

That they somehow help only “big corporations” while leaving small business owners and everyday Americans out to dry.

That’s nonsense. The Working Families Tax Cuts are actually some of the most pro-small business policies in recent memory.

They put money back into the hands of small business owners, thus supercharging local economies and fostering prosperity.

Small business owners get to invest — and deduct it all

If you, or someone you know, runs a small business, you know how painful depreciation rules can be. Buy an expensive piece of equipment or a building? You can’t deduct it on your taxes right away. You have to spread the cost over years, even decades — up to 39 years for some property.

The Working Families Tax Cuts change that. They make full expensing permanent. This means that small business owners can deduct the full cost of most business investments the same year they are made.

In addition to these game-changing tax incentives for investment and expansion, the Working Families Tax Cuts incentivize businesses to invest in research and development by allowing business owners to fully expense eligible domestic R&D costs in the year incurred, rather than spreading them over many years.

That’s not a handout to the rich, it’s a commonsense policy designed to help small businesses.

In fact, the new, more straightforward expensing rules make it easier for smaller firms and businesses to file their taxes.

When an owner invests in their business, they’re building jobs, opportunities, and community growth.

They shouldn’t be punished for their hard work.

The Working Families Tax Cuts bring stability — not Washington’s whims

The 2017 Tax Cuts and Jobs Act was a step in the right direction. It gave businesses a temporary taste of expensing, but didn’t cover factories or buildings.

But most of those provisions were set to expire by December 31, 2025, resulting in a $4.5 trillion tax hike for Americans.

That’s why the Working Families Tax Cuts matter. They take those pro-growth measures and lock them in permanently.

When business owners know the rules won’t change anytime soon, they can plan.

This means:

• Hiring more people
• Expanding operations
• Investing in new technologies
• Building new facilities

All of this translates into economic growth and supercharging small businesses.

Small business owners agree — the Working Families Tax Cuts enable their business growth

Despite what you’ve heard, it isn’t just lobbyists or corporations in favor of the Working Families Tax Cuts.

Small business owners all over the country agree that these permanent tax cuts and simplified filing procedures make it easier for them to invest in the community.

Hear what they have to say:

• “My family and I would not have had the confidence to have a project like this done if it weren’t for the Working Families Tax Cuts to help us.” — William, a farmer from Cabot, PA
• “We know that we can invest in our businesses, we can buy equipment, we can buy trucks, and we can buy the things that we need to help get the American economy working.” — Shawn, a business owner from Port Clinton, OH
• “For years, we fought through red tape, high taxes, and rising costs. … The Working Families Tax Cuts are finally giving small businesses a fair chance.” — Vicki, a small business owner from NC

In other words, the Working Families Tax Cuts tax cuts mean small businesses will invest and grow confidently, continuing the American Dream.  

Business owners can keep more of what they earn

About 95% of small businesses are what’s called “pass-throughs.” That means their income is taxed at individual rates, not corporate ones.

Now that the 2017 tax cuts aren’t expiring, these individual business owners can maintain low tax rates, allowing them to reinvest more in their community, business, and family.

Small businesses are the American Dream — the Working Families Tax Cuts recognize it

When government gets out of the way, small businesses respond.

They can take risks, create jobs, and add serious value to their communities.

The Working Families Tax Cuts honor the principle that small business owners know what their communities need and should be incentivized to grow and invest, rather than being stifled and overtaxed.

So, when critics say this bill hurts small businesses, don’t buy it. They’re missing the point.

The Working Families Tax Cuts give small businesses freedom, certainty, and a simplified tax code that finally rewards hard work.

What’s great is that you can share exactly how these cuts directly help your business.

If you, or someone you know, owns a small business and was affected by these cuts, share your story.

You can also thank your legislator for supporting this groundbreaking legislation.