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A little more than seven months ago, President Trump signed into law a partisan, Republican tax bill.  

Unfortunately, it has become increasingly clear that the lion’s share of benefits from this law will flow disproportionately to the largest corporations and the very wealthy.  At the same time, small businesses, who could have benefited from well crafted, targeted tax reform are largely left behind.  Some small firms are seeing – at best – marginal benefits. Many others have yet to see any meaningful advantage at all.      

A longstanding challenge for small businesses has been managing tax code complexity.  Complying with intricate and frequently changing tax rules imposes a significant burden on small enterprises – many of whom don’t have in-house tax professionals.  

Instead, these small firms need to spend time and money on outside consultants and tax preparers.  We’ve heard time and again from small businesses that this uncertainty and unpredictability imposes additional costs for them – making it difficult, if not impossible, for them to plan.  

Unfortunately, the Trump tax law did little to alleviate these twin problems of uncertainty and complexity. Instead, it has fueled more confusion and uncertainty. For instance, as of today, an over-worked and under-funded IRS has not yet released Section 199A “pass through” regulations.

Another example is the promise that small businesses would be able to file their taxes on a piece of paper the size of a postcard.   As always, the devil’s in the details. Recently leaked IRS documents suggest there will be additional paperwork and worksheets small businesses will need to navigate.  

For those firms that think they’ll be able to capitalize on the new tax laws through restructuring, they can expect an expensive and time-consuming process that may eclipse any benefits.  

While benefits for Main Street small businesses are minimal at best, the Trump tax law will be a boon to Wall Street, big companies, and the extraordinarily wealthy.  Millionaires will receive an average tax cut of nearly $70,000 this year – more than 100 times the size of the average tax cut for families earning less than $150,000 annually.  

Not only does this cast doubt on how large a tax cut most entrepreneurs will receive, but it also suggests most locally owned businesses will not see much secondary, stimulative economic benefit.  Unlike the very wealthy, when working and middle-class families get a tax cut, they are more likely to spend it quickly at local, Main Street businesses, spurring customer demand for small businesses’ goods and services.  

Simply put, the cost of tax reform has been put on the backs of small employers and working families. They will see any rate reduction expire at the end of 2025 -- while corporate rate reductions continue permanently.

On top of it all, the Trump tax changes will mean the federal deficit grows by trillions of dollars.  Already the tax plan jeopardizes health coverage for 13 million Americans --- and these future deficit pressures could imperil Social Security, Medicare and Medicaid.

Most small business owners I know want to take care of their employees.  Ultimately, gutting the ACA and vital social safety net programs imposes indirect costs on responsible entrepreneurs who want to do right by their employees.  

The fact is – real, bipartisan tax reform that helps small businesses, American families and is fiscally responsible could have been achieved -- if Republicans had worked across the aisle. 

Unfortunately, the Trump tax plan was pushed through rapidly with the support of just one party, aimed at achieving a political goal – not good policy.  

It is my hope that, in the future, Congress can work together on more responsible tax solutions that help small firms and strengthen our economy for the long term.