Treasury Secretary Highlights Wealth-Building Initiatives for Main Street
Treasury Secretary Scott Bessent highlighted the administration's economic agenda "designed to unlock ... “Parallel Prosperity” for Main Street and Wall Street."
At a Long Island Business Roundtable, Mr. Bessent asserted that the administration was delivering significant relief to small businesses, with the permanent extension of the 20 percent small business deduction providing an average of $4,600 in tax relief to 8 million entrepreneurs. He highlighted several key steps taken to support innovation and reduce administrative burdens, including: (i) restoring retroactive "immediate deductibility for [research and development] expenses;" (ii) allowing full expensing for upfront business investments to improve cash flow; (iii) repealing 1099-K reporting and raising 1099-MISC and 1099-NEC thresholds to reduce paperwork; and (iv) raising the state and local tax deduction cap to $40,000 through 2029 to assist taxpayers in high-cost states like New York.
Secretary Bessent, who oversees the IRS, explained that the recently enacted Working Families Tax Cuts have driven a strong 2026 tax filing season, with average nationwide refunds increasing by more than 10 percent. He said that nearly half of all filers have benefited from the legislation's signature provisions, including the No Tax on Tips deduction, claimed by over 4.6 million taxpayers, and No Tax on Overtime, which has benefited nearly 20 million filers. Mr. Bessent stated that these measures are "part of a broader effort to usher in a new era of economic growth" by allowing working Americans to keep more of their earnings and see an immediate jump in their take-home pay.
Mr. Bessent also promoted "Trump Accounts," framing the initiative as the ultimate merger of Main Street and Wall Street driven by the vision of making "every American a shareholder." He explained that the groundbreaking policy was designed to build long-term wealth and upward mobility for younger generations through tax-advantaged accounts. Under the program, children born during the President’s term will receive a $1,000 Treasury contribution immediately invested in an index fund, and all children under 18 remain eligible for the accounts through a simplified tax filing process.