Tax Reform Impacts on Small Businesses

This document is a report that outlines the effects of tax reform on small businesses, focusing on various tax deductions, credits, and exclusions that can support their growth. It details how tax policy reform is a priority for small business owners, as indicated by a survey from Goldman Sachs. The report discusses specific provisions such as R&D expensing, Section 179 expensing, and the pass-through deduction, explaining their current status and implications for small businesses. It highlights the challenges posed by recent changes in tax laws, particularly the shift from immediate expensing to amortization for R&D costs, which has created liquidity issues for small businesses. Additionally, the report presents various tax credits aimed at reducing costs for small businesses, including the Retirement Plan Startup Credit and Paid Leave Credit, while noting the bipartisan support for enhancing these credits. The document emphasizes the importance of tax policy in fostering a favorable environment for small business growth.