BAY BUCHANAN: The Six Point Plan To Save America’s Small Business

The recent volatility in the stock market has once again tilted America’s attention toward the giants of Wall Street. But while analysts obsess over earnings reports and stock valuations, the real measure of our economic health lies not in the Fortune 500—but in the 34.8 million small businesses across America that employ nearly half the workforce. From family-run restaurants to local manufacturers and tech start-ups in garages, small businesses are the beating heart of American innovation, job creation, and opportunity.

Unfortunately, that heart has been under strain. A toxic mix of inflation, regulatory overreach, and uncertainty around taxes and health care has created one of the most challenging operating environments in decades. If Washington is serious about restoring sustainable growth and protecting America’s entrepreneurial edge, it must act decisively—and quickly.

Here’s a six-point plan that Congress should pursue to put Main Street back in the driver’s seat.

1. Make the 2017 Tax Cuts Permanent

The 2017 Tax Cuts and Jobs Act was a lifeline for small businesses, lowering individual rates and introducing a 20% deduction for pass-through entities—business structures that most small firms use. But unless Congress acts, those provisions expire this year. The House Ways and Means Committee warns that as many as 26 million businesses could see their top tax rate soar to 43.4%—roughly 20 percentage points higher than what China imposes on its companies. Small businesses can’t plan, invest, or hire amid that kind of uncertainty.

2. Address Soaring Health Care Costs

After payroll, health insurance is the single largest cost for most small businesses. Over 90% of small business owners say it’s a significant challenge, and nearly one in five cite it as their top expense. The National Federation of Independent Business has proposed a set of flexible, targeted tax credits to help small firms and the self-employed afford health coverage. Congress should explore the feasibility of new tax credits in this area.

3. Restore 100% Bonus Depreciation

The 100% bonus depreciation deduction, which began phasing out in 2022, allowed businesses to immediately deduct much of their investments in equipment, software, and property improvements as a business expense. An American Economic Association analysis found it significantly boosted capital investment and job creation, especially among small and mid-sized firms. President Trump has already signaled his support for reinstating this powerful incentive and Congress should move it to his desk.

4. Rein in Regulatory Overreach

Big businesses can hire lobbyists and legal teams to navigate burdensome regulations. Small businesses can’t. That’s why reforms like the Small Business Regulatory Flexibility Improvements Act (H.R. 421), sponsored by Rep. Ben Cline (R-VA), are critical. This bill would require federal agencies to analyze how their proposed rules would impact small businesses before they’re implemented—a common-sense step that puts fairness back into the regulatory process.

5. Repeal Section 1071 and Expand Access to Credit

One of the most harmful Biden-era rules is the expansion of Section 1071 of the Dodd-Frank Act. Originally requiring 13 data points on small business loan applicants, DEI-minded regulators ballooned it to 81—dramatically increasing paperwork and compliance costs, especially for community banks. Rep. Roger Williams (R-TX) has introduced the 1071 Repeal to Protect Small Business Lending Act to reverse this overreach and ensure local lenders can keep doing what they do best: getting capital to small businesses that need it.

6. Root Out Waste and Fraud in SBA Programs

Oversight must go hand-in-hand with support. The Department of Government Efficiency (DOGE) recently uncovered that more than $330 million in SBA loans were issued between 2020–2021 to fraudulent applicants—some allegedly over 115 years old.

Fixing these leaks isn’t just about saving money—it’s about making sure legitimate small business owners get the support they deserve. Congress must continue to push for accountability and smart reform across all small business assistance programs.

The sudden market downturn could be a brief correction—or the beginning of something deeper. But regardless of what happens on Wall Street, our long-term economic strength will be determined by what we do for Main Street. We must stop drowning small businesses in red tape and unpredictability. It’s time to replace bureaucratic complexity with clarity, reward risk-taking over regulation, and rebuild the economic ladder from the ground up.

Small business isn’t just the backbone of our economy—it’s the soul of the American Dream. Let’s act like it.

Bay Buchanan served as the 37^th Treasurer of the United States under President Ronald Reagan.

The views and opinions expressed in this commentary are those of the author and do not reflect the official position of the Daily Caller News Foundation.