The Tax Cuts and Jobs Act, which passed the House last week, will reduce the tax rate on small business income to the lowest level since World War II. It even provides a new, low tax rate of 9 percent for businesses earning less than $75,000 in income to help microbusiness startups that fuel innovation and job creation in communities across the country.
Many businesses throughout Southern Arizona fall within this income range. This bill establishes strong safeguards to distinguish between individual wage income and “pass-through” business income, so tax relief goes to the local job creators it was designed to help most.
This would have an immediate impact in Southern Arizona and assist our businesses in finding the cash flow to hire new employees and focus on revenue growth.
A specific provision of the act allows small employers to immediately write off the full cost of new equipment such as computers, vehicles and machinery to improve operations and enhance the skills of their workers. It also protects the ability to write off the interest on business loans that help them start or expand a business, hire workers and increase paychecks.