There’s good news this Small Business Week. According to a new report from Paychex, “Small business employees saw their wages grow last month at the strongest rate in more than two years.”
And there’s more:
- Optimism among small business owners has risen for the past four quarters as measured by CNBC. It said in its survey release, “For the first time since CNBC and SurveyMonkey began taking the pulse of Main Street more than a year ago, a majority of small-business owners across the country say business conditions are ‘good.’”
- In a Bank of America report published last week, 58 percent of small business owners said tax reform has been a “game-changer for small business overall,” and 63 percent said the new tax law makes them more optimistic about their business outlooks.
The Tax Cuts and Jobs Act has eased the tax burden on small businesses in a few ways:
- A new 20 percent tax deduction for qualified business income to support small business owners.
- Full and immediate expensing of capital expenditures like equipment. That translates into savings that can then be reinvested into the business and its workers.
- Simplified accounting rules to allow small businesses to operate on a cash flow basis, rather than dealing with complicated inventory accounting and capitalization requirements.
- Business owners will receive the same benefits as individual filers, like lower rates and a nearly doubled standard deduction.
The updated tax system is having a meaningful impact—both by creating an economic climate where small businesses can thrive and giving individual owners the confidence to do so. Just last week, Speaker Ryan visited small businesses in his district, one of which has already started expanding because of tax reform.
When these businesses do well, it means good things for our economy, beginning with job growth. Nearly two-thirds of the private-sector jobs created in our country are generated by small businesses. With a new tax code that supports entrepreneurship—rather than putting up barriers to it—these businesses and their owners can continue spreading the spirit of enterprise, creating jobs, and driving growth in our communities.
As House Small Business Committee Chairman Steve Chabot (R-OH) said this week, “The fact is, when small businesses are strong, America is strong. So, to the innovators, the risk-takers, and the opportunity creators, this week and every week we celebrate you.”