U.S. Senator Tammy Baldwin introduced legislation to provide tax relief to entrepreneurs looking to start a small business and reduce barriers for startups. The Tax Relief for New Businesses Act would increase the startup tax deduction from $5,000 to $50,000 and allow businesses to write off more expenses to compensate for the increasing cost of starting a business.
Currently, small business owners can only deduct up to $5,000 in startup costs in the first year, yet a recent survey found that they spend an average of $40,000 to get their businesses off the ground.
This legislation is also led by Senators Jacky Rosen and Jeanne Shaheen and endorsed by the Main Street Alliance and Center for American Entrepreneurship.
