Representatives in the House passed another tax act. Dubbed the Protecting Family and Small Business Tax Cuts Act, the legislation is meant to serve the middle class and, according to Rep. Kevin Brady, “allow more businesses to move from their kitchen table to their first office.”
Below, we’ll review the bill’s basics and explore how it could impact your finances.
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Micro Brief: The House’s Latest Tax Vote
Last year, federal lawmakers passed the Tax Cuts and Jobs Act. Though a sweeping reform, legislators hung most of the cuts on 2026 expiration dates. Eager to make the changes permanent and tweak deductions, Congress ratified an amendment called the Protecting Family and Small Business Tax Cuts Act.
The new proposal accomplishes two main things.
- It establishes a “universal savings account” option, which is intended to support middle class families by providing a new tax-free earnings and savings vehicle. Unlike retirement and other investing opportunities, these new savings accounts would not have as many withdrawal fees and withdrawal penalties.
- It doubles the expense amount that startups can write off in their first year of operations, from $10,000 to $20,000.
The proposal passed the House, but the Senate has yet to green light the legislation. Will it, you ask? Well, political experts are currently split on the matter. Things will likely become clearer after the midterms. We’ll be keeping our eyes on this, though.
Connect With An Illinois Tax Lawyer Who Works With Startups
In the meantime, various credits and deductions are available to businesses and startups — and we know how to best leverage them so you can hold on to your money.
If you’re ready to speak with an Illinois tax lawyer, get in touch today. We have the answers and know-how you need.