Business owners find key benefits in tax reform bill

Business owners find key benefits in tax reform bill

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LUBBOCK, Texas -

Small businesses will find some benefits within this new tax reform bill. It includes a 20% deduction of qualified income from certain pass-through businesses. 

"We believe that this bill is going to have a really positive impact on local small businesses," said Matt Heider, tax senior with Robinson Burdette Martin and Seright. "We know the focus right now is on the c corporations tax rate which is at 35% currently the tax law is going to take it down to 21%." 

Most small businesses are not taxed as c-corporations, instead they're considered pass through entities or Sole proprietorship. The new changes will bring key benefits.

"So what congress did is they provided a twenty percent deduction for profitable businesses that pay wages to their employees," said Heider. "So that is something that is very new were the local businesses can definitely benefit from." 

Scott Malouf is the owner of Drest by Scott Malouf and said he sees the new tax reform bill as a positive for his business. 

"I think with relief to small business I think it creates a lot of opportunities," said Malouf. "I think that part of the tax bill on the pass through does make smaller business have some advantages and some optimism about expanding." 

Eddie McBride president of the Lubbock Chamber of Commerce in a statement said he is still concerned over its small business partners and will remain as vigilant studying the bill and implementation as they monitored the journey for comprehensive tax reform. 

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