Small Business Tax Breaks Assessed

The Congressional Research Service released a report reviewing the federal tax breaks for small businesses. The breaks discussed include expensing of the cost of machinery and equipment, a deduction for startup costs, tax credits for starting a retirement plan or making improvements to comply with the ADA, and the exclusion of gain on the sale of qualified small business stock. The report notes that federal tax law does not rely on the SBA definition of “small business” and that the Joint Committee on Taxation estimates these breaks were about $18 billion in foregone federal revenue for FY 2021. #IdeaoftheDay