There has been much discussion around how the new tax laws will affect individual taxpayers and families of all income levels, but what about small businesses, startups and corporations? Individual taxpayers will see a decrease in their income tax rate, a doubling of the standard deduction, a reduction of itemized deductions and changes to elder care, business and child taxes. The Alternative Minimum Tax has been kept for individuals and corporations alike, but the income bracket for those it affects has been raised: $70,300 for single filers and $109,400 for joint filers.

Many business owners may be wondering if they will see any benefits from the tax reform? Certainly. The new code is attempting to stimulate economic growth across the nation for both consumers and businesses by operating under a supply-side economics theory. The aim is to provide tax deductions across the board, putting more money in employee’s wallets and hopefully stimulating consumer spending. Increased spending on products and services, combined with lower taxes, will hopefully allow employers to grow their workforce and create more jobs.

So what sort of tax deductions can businesses expect? For starters, the plan lowers the corporate tax rate from 35% to 21% in 2018, as well as lowering the income tax at almost every rate for the time being. Corporations will also be able to deduct state and local taxes, and estate tax exemptions will double, aiding the 1% who pay those taxes while contributing approximately 17 billion in taxes. For small business owners, rather than amortizing the cost of depreciable assets over several years, they will be able to deduct them in a single year, which should encourage increased investment and growth.

Under our present tax system, multinational taxpayers are taxed on any income earned overseas when those profits are brought back to the United States. The new system, however, will not tax foreign profit. This means that those business owners will be motivated to bring that money back and reinvest it in the US economy rather than leave it overseas to boost another nation’s economy.

Hopefully, business owners across the country who do reap the benefits of the tax changes will use it as an opportunity to expand or improve their businesses and strengthen the overall American economy.