In December 2017 Congress passed the first major tax reform since 1986, the Tax Cuts and Jobs Act. The bill introduced by President Trump and the Republican party promised to simplify the tax code and tax filing process as well as bring lower taxes to nearly all Americans. The primary accomplishment of the bill is the lowering of the corporate tax rate to a flat 21 percent. Since most small businesses are not able to take advantage of this rate reduction due to their tax structure, Congress introduced other tax breaks in order to lower the effective tax rate on small businesses. This paper discusses how the Tax Cuts and Jobs Act affects American small businesses and their owners.
Author: Jennifer Briegel is currently a student in the masters of taxation and financial planning program at Widener University. She majored in accounting at Temple University, receiving her undergraduate degree in 2017. Jenn is currently living in Philadelphia and working as a staff accountant for a global retailer in southern New Jersey.