As featured in Forbes Councils.
American policy approved in 2025, such as tax breaks offered through this administration’s One Big Beautiful Bill (OBBB), has the potential to support the average American and the small businesses run by them through creating a personal, localized impact in their communities.
For The Consumer
As discussed in my last article, “Tax Benefits You Should Know About in 2026,” OBBB made it possible for many taxpayers to receive a larger refund this year. That trend is bound to lead to an increase in local spending, a stimulation of consumer activity that will, at least in part, benefit small businesses.
Small businesses that see more sales from an uptick in spending could find themselves in the position to hire more employees, potentially putting a dent in the country’s unemployment rate (quoted at 4.4% in February). More community members with an income translates to more community members in the position to spend, creating a full-circle impact for both parties.
When consumers do spend it, their dollar is predicted to go further. The U.S. Consumer Price Index decreased in early 2026 in comparison to the end of 2025. Namely, certain energy prices have been predicted to fall by the year’s end—including gasoline with the decrease of crude oil prices. (Of course, this prediction is subject to the state of geopolitical affairs; at the time of writing, trade intelligence expert Amena Bakr forecasts that oil prices may only see “a small and short-term” impact from recent events.) Cheaper gas positively impacts every level of transportation, from Uber to airplane rides; with businesses taking on lower expenses, consumers are expected to benefit from more economical travel costs in the long term at the time of this writing.
It’s not just companies facilitating travel that will save money and, in theory, pass fewer costs to consumers in 2026. Federal deregulation efforts like the February 12 Environmental Protection Agency ruling that repealed greenhouse gas emission standards for many motor vehicles reduce the cost of compliance processes across industries. As captured by a 2025 report from The Council of Economic Advisers, excess regulation sometimes requires the allocation of resources away from profitable activities—potentially reducing prospective economic growth and stifling competition. (Neither I, nor the interests I represent, advocate for deregulation. I am simply stating the effects of instating or reducing compliance obligations experienced by businesses.)
For The Small Business
Interest rates are also expected to be cut this year. Forbes predicted at the end of last year that by December 2026 the federal funds rate will be around 3%, a significant decrease from the 3.64% rate at the time of this writing.
A trend of lowered rates directly helps small businesses in a way that is more direct than that of multinational companies who routinely reap the rewards of a stronger base of resources. For instance, when rates come down, that money goes back to the small business’s bottom line. While S&P 500 companies might offer the results of improved cash flow to shareholders or disperse it through investments abroad, smaller businesses can use those funds to access options previously unavailable to them. A rate cut means cheaper borrowing, or a lower cost of capital on business loans, business lines of credit and business credit cards.
These reinvestments into their business help small-business owners build on existing capacity and even offer new services. This is promising, as lower interest rates can also mean higher consumer demand. It’s a no-brainer that more Americans would want to take advantage of more economical mortgages and auto loans, for example.
All the while, as they’re functioning at a higher volume, small businesses that operate domestically have the opportunity to claim bonus expenses. This strategy, endorsed by the presidential administration with the intent of bringing manufacturing back to the U.S., is known as bonus depreciation.
A Change From History
In recently recorded history, those living on Main Street USA have not meaningfully participated in the financial success of their economy. Typically, a vast majority of financial policy allows for any income outside the budget forecast to go to big businesses and their investors. That changes in 2026.
This year, Wall Street might have an excellent year. However, that’s usually the only street that does. Finally, with more money in the pockets of the consumer and, in turn, in the pockets of their favorite mom-and-pop shop, the “little guy” has the opportunity to better their fiscal standing.
This year, maybe the coffee shop owner around the corner, who can now expense their bean roaster to do more business, increases sales enough to buy their first home. Maybe a new graduate living paycheck to paycheck gets a large tax cut and puts away savings for “someday” for the first time. Maybe a student who hustles for their tips to pay off tuition fees gets to keep exactly what they worked for when they don’t have to pay taxes on their tips from last year.
This may be the year our finances can work for us, the year we see our wealth grow beyond inflation. A leg up can be the first step to building a meaningful financial foundation—earnings that benefit not just us but our communities, too.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
