05.01.26

Big Wins for Small Businesses and the Next Generation of Workers in the Working Families Tax Cuts

This National Apprenticeship Week and Small Business Week, American Workers, Farmers and Ranchers, and Small Businesses Are Benefitting From Republicans’ Working Families Tax Cuts

THE WORKING FAMILIES TAX CUTS LAW CREATES NEW OPPORTUNITIES FOR TRADE WORKERS AND APPRENTICESHIPS

  • The Working Families Tax Cuts law expands 529 savings accounts, widening the scope of qualified expenses on which funds can be used and increasing the accounts’ annual expense limit from $10,000 to $20,000. (U.S. Senate Committee on Finance: Expanding Educational Opportunity and Affordability – accessed 5/1/26; Fortune: New 529 plan rules let Gen Z invest in careers, not just college—and it reflects a seismic shift in education – 7/28/25)
  • “Like Roth IRAs, 529s let account holders invest after-tax money in stock and bond funds, with income and qualified withdrawals free of federal taxes.” (The Wall Street Journal: op-ed: The 529 Education Revolution Is Here – 6/27/25)
  • “Congress has made federal policy far more favorable for all types of education: foundational, postsecondary, workforce development and lifelong learning.” (The Wall Street Journal: op-ed: The 529 Education Revolution Is Here – 6/27/25)
  • “The latest amendments to 529 plans are transformative, expanding them into tax-free savings accounts for a range of K-12 expenses, job-training, workforce-development and even disability-related costs… these accounts can be used to cover tutoring, vocational training in skilled trades such as plumbing and welding, professional licensing, credential programs and continuing education.” (The Wall Street Journal: op-ed: The 529 Education Revolution Is Here – 6/27/25)
  • The Working Families Tax Cuts law increases Pell Grant funding and expands eligibility to students in workforce training programs, opening up more opportunity for those pursuing non-traditional college education:
    • Provides “$10.5 billion in additional Pell Grant funding to prevent a shortfall.” (The Wall Street Journal: Tax Cuts, Student Loans, Medicaid: What’s in the GOP’s Megabill – 7/3/25)
    • “Creates Workforce Pell grants so that workers can take advantage of short-term programs that provide the skills needed for in-demand jobs.” (U.S. Senate Committee on Health, Education, Labor & Pensions: President Trump, Republicans Deliver Historic Wins in One Big Beautiful Bill, Reforming America’s Broken Higher Education System – 8/1/25)

AHEAD OF SMALL BUSINESS WEEK NEXT WEEK, ENTREPRENEURS AND WORKERS AROUND THE COUNTRY HAVE MORE MONEY IN THEIR POCKETS AND NEW OPPORTUNITIES TO GROW

  • “Nearly 12 million small business owners are seeing an average tax reduction of nearly $7,000, while the permanent extension of the 20% Qualified Business Income deduction is delivering $4,600 in average relief to eight million entrepreneurs.” (White House: This Tax Day, Americans Are Keeping More of What They Earn – 4/15/26)
  • The Working Families Tax Cuts law drives growth in the economy by incentivizing investment in small businesses, including:
    • “Permanent small business deduction, enabling job creation and spurring local economic activity.”
    • “Full expensing for new capital investments, like machinery and equipment, to boost domestic production.”
    • “Full expensing for new factories and factory improvements to accelerate domestic manufacturing.”
    • “Restor[ing] interest deductibility to a globally competitive standard to help finance critical domestic investments.” (U.S. Senate Committee on Finance: Working Families Tax Cuts – accessed 5/1/26)
  • Small business owners keep praising the positive effect the Working Families Tax Cuts law is having on their livelihoods:
    • “The Working Families Tax Cut Act gives us confidence and certainty when we invest into our business by expanding jobs and implementing new technologies and equipment. All of this is impactful for our community, where we continue to grow and push advanced manufacturing jobs…” – Colby Coombs, CFO of Winthrop Tackle in Connecticut
    • “The Working Families Tax Cuts Act is important to a company like ours because it creates stability in our tax code. The stability helps us confidently invest, grow, and create high-quality manufacturing jobs right here in North Central Iowa.” – Tom Mangan, President and CEO of Sukup Manufacturing Company in Iowa
    • “The Working Families Tax Cuts Act has had a direct and meaningful impact on our business… This growth translates into real opportunities – more jobs, bigger facilities, and increased economic activity. And it’s not just the businesses that benefit: The Working Families Tax Cuts Act is also helping our employees.” – Dan Sweetwood, President of Allied PhotoChemical in Michigan
  • Despite these testimonials, Democrat leaders call the Working Families Tax Cuts law a “scam:”

THE WORKING FAMILIES TAX CUTS LAW ALSO GIVES AMERICA’S AGRICULTURE PRODUCERS THE CERTAINTY THEY NEED TO KEEP FEEDING AND FUELING AMERICA

  • “Farmers have faced increased financial pressure in recent years because of stagnant reference prices, as well as high inflation and rising input costs. According to the U.S. Department of Agriculture, net farm income declined from $228.4 billion in 2022 to $163.1 billion in 2024.” (Arkansas Democrat Gazette: Boozman says One Big, Beautiful Bill Act offers help for farmers – 8/18/25)
  • Economists at the American Farm Bureau note that the Working Families Tax Cuts law “strengthens the farm safety net and offers longer-term certainty for farmers and ranchers navigating rising input costs, volatile markets and weather uncertainty.” (Farm Bureau: One Big Beautiful Bill Act: Final Agricultural Provisions – 7/17/25)
  • Republicans’ Working Families Tax Cuts law also:
    • “[G]rants permanency to numerous tax provisions important to families and farms in Title XI, Part 1, preventing their tax rates from increasing if they had been left to expire at the end of 2025.”
    • Makes permanent the 199A small business tax deduction, which “lowers the share of farming profits spent on taxes and is a big win for small businesses nationwide that compete alongside corporations with lower tax rates.”
    • Permanently extends the $15 million individual death tax exemption, helping to “ensure more family farms can transition smoothly to the next generation without being forced to sell off land or assets to pay the IRS.” (Farm Bureau: One Big Beautiful Bill Act: Final Agricultural Provisions – 7/17/25)
    • Institutes permanent 100% bonus depreciation, an “effective way to encourage new investment. By allowing businesses to fully deduct the cost of new investment against their taxable income, 100 percent bonus depreciation eliminates the tax on what are called ‘marginal’ investments.” (American Enterprise Institute: Senator Warren Is Wrong About Bonus Depreciation – 10/6/25)
  • These provisions will help farmers and ultimately all Americans get ahead:
    • “The extension of the tax provisions are a lifeline for American farmers, especially as it relates to fruits, vegetables, and flowers. If you think about all the headwinds that American farmers are experiencing—between labor, increasing costs, access to markets—the extension of these provisions provide much needed relief.” – Cathy Burns, President and CEO, International Fresh Produce Association
    • “When you buy that piece of equipment, you’re expected to pay it off in three to seven years. That’s usually what the finance is at. Those are pretty hefty bills that come to play. Being able to use that 100 percent depreciation, it freed up money so I can make those payments.” – Jolene Riessen, Iowa corn farmer