One Year In, Working Family Tax Cuts Are Fueling Main Street’s Comeback

Independence Day this year was more than America’s 250th anniversary – it marked one year since President Trump’s Working Family Tax Cuts spared American workers and entrepreneurs a $4 trillion tax hike. As SBA Regional Administrator, I’ve spent this past year listening to Main Street owners across New York, New Jersey, Puerto Rico, and the U.S. Virgin Islands who’ve been clear: these tax cuts are not theory. They are cash‑flow, confidence, and opportunity for the small businesses that keep our communities alive and neighbors employed.

Since 1776, America’s strength has come from local risk‑takers: like the fifth-generation  Queens sheet metal manufacturer who can 100% expense new Made in America equipment for an innovative new product line, the restauranteur whose employees are putting more money back into their pockets thanks to No Federal Tax on Tips, the woman-owned U.S. military supplier investing in the future with R&D, and the small manufacturer whose employees are motivated to work extra hours because of No Federal Tax on Overtime. Working Family Tax Cuts were written with these people in mind – to ensure affordability.

Ninety‑seven percent of filers saw their tax bill go down this year, unlocking $82 billion in new relief. For families earning under $73,000, federal income tax liability was eliminated altogether – a lifeline for the very customers who walk through Main Streets’ doors every day – while the war on the gig economy ended by scrapping the rule that Venmo, PayPal, and other gig payments over $600 be reported to the IRS.

For small business owners, the biggest change is certainty. The 20 percent small business deduction is now permanent, so S corps, LLCs, and sole proprietorships – found all across Main Streets – can plan hiring, expansion, and succession without fearing a sudden policy reversal. Economists estimate this deduction will fuel tens of billions in annual economic growth and over 1 million new small business jobs – the National Federation of Independent Businesses says it “eases the [financial] pressure” for small business owners. For entrepreneurs reviewing next year’s budget, that’s the difference between “we’ll see” and “let’s go.”

The law also aligns the tax code with modern investment. Businesses can immediately expense up to $2.5 million of capital purchases each year, double the previous limit. Immediate 100 percent expensing for machinery and equipment means the payoff from upgrading a production line or buying a new truck shows up in your bottom line right away. Immediate R&D expensing lets innovative small firms deduct domestic research costs in the year they’re incurred; greater interest deductibility turns “I’d love to invest, but…” into “I can’t afford not to.”

For many small businesses and their employees in hospitality and retail, tips and overtime are the margin between survival and success. No Federal Tax on Tips or Overtime keep those dollars local – spent at the diner down the street, used to pay off loans, invested in childcare and transportation – cycling back into your community and your customer base.

Working Family Tax Cuts also strengthen the families that own and work for small businesses. Seniors gained a $6,000 Social Security deduction, the Child Tax Credit is permanently doubled to $2,200, and new “Baby Investment Accounts” – Trump Accounts – give children a financial head start and a tangible stake in our nation’s economic future. Coupled with permanent relief from the death tax, family‑owned companies can finally think about passing on a business rather than selling it to pay the IRS.

As SBA Regional Administrator, my mission is straightforward: to help small business owners and their skilled workers seize this moment. Lower taxes and fewer regulatory burdens mean entrepreneurs can spend more time serving customers and less time buried in paperwork. If you’ve been waiting to expand, invest, or hire, this one‑year anniversary is your signal that the wind is at your back. President Trump’s Working Family Tax Cuts are delivering for hardworking families and the Main Street employers who rely on them. Lower taxes build stronger families – and stronger families bring life, spending power, and confidence back to Main Streets that are once again poised to grow.