The tax bill released on Thursday responds to this perspective in several ways. It makes it easier for entrepreneurs to invest in their businesses by implementing full expensing, which allows businesses to write-off the cost of purchases fully and immediately. This stands in contrast to current rules, which set arbitrary standards for business owners to deduct, over time, the cost of their capital investments.
By dropping and condensing the personal income tax rates, small businesses whose taxes are paid on their owner’s personal tax returns, will see a tax cut. The bill simplifies the rules for how small business income will be taxed and brings U.S. law in line with common practices, giving small business owners confidence and clarity.
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