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Small Business For Dummies, 6th Edition
book

Small Business For Dummies, 6th Edition

by Eric Tyson, Jim Schell
April 2024
Beginner content levelBeginner
464 pages
12h 59m
English
For Dummies
Content preview from Small Business For Dummies, 6th Edition

Chapter 23

Ten Ways Recent Tax Reform Benefits Small Business

IN THIS CHAPTER

Bullet Understanding the reduced income tax rate on corporations

Bullet Looking at changes for interest deductions, net operating losses, and health insurance

Corporate tax reform in the United States was long, long overdue. For many years, corporations in the United States faced a much higher corporate income tax rate than did companies based in most overseas economies. As a result, increasing numbers of U.S. companies chose to expand more overseas rather than in the United States and to be headquartered outside of the country, which wasn’t good for the long-term health of the U.S. economy and labor market.

The Tax Cuts and Jobs Act took effect with tax year 2018. It was the most significant tax reform package passed since the Tax Reform Act of 1986. This chapter highlights the ten most significant provisions that affect (and mostly benefit) small business.

Corporate Income Tax Rate Reduction …

At 35 percent, the United States had one of the highest corporate income tax rates in the world before 2018. The Tax Cuts and Jobs Act slashed the corporate income tax rate to 21 percent, which represented a 40 percent reduction.

… and (Some) Simplification

The corporate tax rules and deductions were simplified, including ...

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Publisher Resources

ISBN: 9781394242764Purchase Link