Main Street Is the Big Winner in New Tax Legislation

House Republican Tax Plan, America’s small businesses are receiving a long-overdue boost with the House Republican tax bill. This legislation cuts taxes, slashes red tape, and offers targeted incentives that make it easier for Main Street to hire, expand, and thrive.

Let’s break down the eight ways this bill helps drive a small business boom across the nation.

1. Increased Pass-Through Deduction Saves Billions

A major win in this bill is the increase in the pass-through deduction from 20% to 23%. Over 26 million small businesses stand to benefit, resulting in significant tax savings and more reinvestment capital.

This change supports local shops, service providers, and independent contractors—the backbone of every American town.

2. Permanent Individual Tax Cuts Offer Predictability

Since most small businesses file as pass-throughs, personal tax rates matter. This bill makes the individual tax cuts from the 2017 TCJA permanent, offering long-term certainty.

With predictable rates, small business owners can confidently plan for growth, invest in employees, and expand their services.

3. Restored 100% Bonus Depreciation Speeds Investment

The bill revives 100% bonus depreciation, enabling small businesses to deduct the full cost of new property or equipment in the year of purchase.

This change allows faster modernization, encouraging firms to invest in tools, vehicles, and tech that boost efficiency and growth.

4. R&D Expensing Puts Innovation Within Reach

Innovation isn’t just for large corporations. The bill ensures small businesses conducting research and development can immediately expense those costs.

From startup software companies to small labs and advanced manufacturers, this change fosters competition and cutting-edge progress.

5. Federal Tax Relief on Tips and Overtime

For service industries, the bill provides a critical relief by excluding tips and overtime pay from federal income tax.

It’s a financial win for servers, bartenders, gig workers, and more—and it helps small business owners manage labor costs more effectively in a tight job market.

6. Bigger Standard Deduction Simplifies Filing

The expanded standard deduction simplifies the process for millions of entrepreneurs. No more getting bogged down with complicated itemizations.

Small business owners can now file faster and save money—putting more energy into running their business instead of paperwork.

7. Made-in-America Incentives Boost Domestic Production

With tax credits tied to domestic content and U.S. employment, the bill encourages American-made goods and homegrown jobs.

This shift benefits small manufacturers, welders, construction firms, and skilled tradespeople ready to rebuild America from the ground up.

8. A Tax Code That’s Easier to Navigate

The bill trims unnecessary complexity. By promoting standard deductions and reducing confusing loopholes, the tax system becomes easier for small businesses to understand.

Streamlining the code cuts compliance costs and frees up time—two things small business owners never have enough of.

A Brighter Future for Small Business America

This tax bill isn’t just a policy—it’s a promise to Main Street. Backed by sound economic projections, the legislation is expected to:

• Grow the economy by 5.2%

• Create 7.4 million full-time jobs

• Boost investment by 14.5%

• Increase wages by $11,600 per worker

With stronger cash flow, greater certainty, and lower taxes, small businesses can now focus on what they do best—creating jobs, serving communities, and driving America’s future.

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