This is my third column (Apr/Oct) on tax reform in 2017. The first two warned about how small businesses might be treated badly. I was right.
This analysis of the new Tax Cuts and Jobs Act (TCJA) primarily concerns all businesses and how they might use tax savings in the economy. But first, some perspective.
There are three groups vying for tax cuts: large businesses (corporate America), small businesses (pass-through entities) and individuals, who usually spend their tax cuts.
Businesses have a threefold impact by spending, investing and creating jobs. For small businesses, it’s an article of faith that they reinvest any cash from a tax cut back into their business. Everybody knows that. Nothing new here.