Top GOP’s Priorities under Trump: How It Affects You and Small Business Owners

With Donald Trump back as President, and both the House and Senate in GOP’s power, Republicans become ready to push a set of legislative changes. Most important will be the thorough reform of the U.S. income tax system. The following are some of the top GOP’s priorities and how those changes can influence individuals and small businesses.

Key Legislative Changes

Making the 2017 Tax Cuts and Jobs Act, TCJA Permanent

Overview: Major tax reductions and reforms were designed to be temporary, cessation or expiring by the end of 2025. The Republicans are seeking to make the cuts permanent.

Impact on Individuals: Individuals can continue enjoying reduced tax rates, higher standard deductions, and enhanced child tax credits.

Impact on Small Businesses: Small businesses organized in a pass-through manner would continue with the 20% deduction on qualified business income, which has been the major tax relief.

Restoring Immediate Expensing for Research and Development Costs

Overview: Republicans would restore immediate expensing of R&D costs, which started to phase out after 2022.

Individual Consequences: Mostly a factor that will help business firms, but individuals dealing in R&D sectors may benefit by having more job opportunities opened and eventually commanding a higher salary.

Small Business Consequences: Small businesses dealing in R&D would gain from immediate tax deductions which will result in enhanced cash flow and more innovative activities.

Reinstatement of 100% Expensing Provision

Short Recap: Republicans will likely confirm reinstating the expensing of 100% of eligible costs of some investments made by businesses in the tax year.

Personal Impact: This provision may result in increased investment in businesses and create more jobs and grow the economy.

Small Business Impact: The small businesses stand to gain from the immediate tax relief that capital expenditures under this provision would provide. These will no longer be hard: investing in new equipment and technology.

Addressing the State and Local Tax Deduction Cap

Overview: The GOP would abolish the $10,000 limit on SALT deductions to help solve one of the most dire issues, particularly in high-tax states.

Individual Implication: Lifting the cap would provide huge tax relief for individuals in high-tax states and might even bring their overall tax burden down.

Small Business Impact: The owners of small businesses who itemize may lower their taxable income, and in turn, reduce the overall amount of taxes they will be paying.

The Child Tax Credit: Strengthen

Overview: The Republicans would extend the Child Tax Credit but ensure that the extensions result in work requirements for recipients.

Individual Impact: Families with children may get more tax credits that could include an allowance for more money. However, the work requirements incorporated may obstruct them from being qualified for it.

Impact on Small Businesses: This would lead to better financial conditions for small business owners with families through increased tax credits.

Conclusion

The legislative Top GOP’s priorities under Trump would include extending and expanding tax cuts and reforms introduced in 2017. These are intended to be changes that augment economic growth, business investments, and tax relief for individuals and small businesses. Similarly, it can be noticed that although some of the measures put forward come with immense benefits, problems and controversies exist, such as debates on the SALT deduction cap and work requirements for tax credits. As this legislation continues to evolve, it will be of the utmost importance for individuals and small businesses to be vigilant through education-provided by tax professionals-what this will really mean for their personal situations.