Congress cuts taxes for small businesses—but only the lowest-paid workers benefit
S. 3459 — Support Small Business Growth Act of 2025 · Filed by Jon Ossoff (D-GA) · 1 cosponsor · Introduced Dec 11, 2025 · Referred to committee
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What it does
This bill creates a temporary payroll tax deduction for small businesses with 15 or fewer employees, allowing them to deduct 12% of wages paid to their lowest-paid workers—up to 10 employees per year, phasing down to zero by 2034. The deduction is capped at $8,000 per employee for the first tier, $6,000 for a second, and $4,000 for a third, and applies only to non-highly-compensated workers. The benefit expires after 2033.
Why we flagged it
The bill's operative mechanism is a time-limited payroll tax deduction for a narrowly defined class of small employers. It is straightforward tax relief, not a subsidy or regulatory change, and the title accurately describes its function.
What the text implies
- The deduction phases down and expires entirely by 2034, creating a cliff effect that may disrupt business planning and workforce decisions if not renewed.
- By limiting the deduction to the lowest-wage workers, the bill may create perverse incentives for wage compression or discourage raises for higher-paid staff relative to the lowest-paid tier.
The full analysis lists 4 implications of this text.
Who stands to gain
small businesses with 15 or fewer employees; businesses with significant low-wage workforces