Tax reform is a hot topic among politicians this week as President Donald Trump releases details outlining the changes he plans to make to the current U.S. tax code.
The President said his plan will to cut corporate taxes to about 20 percent, down from the current 35 percent.
White House economic adviser Kevin Hassett backs Trump's claims that these tax cuts will be beneficial to small business owners. However, a local economist said this might not be the case.
"Virtually no small business owners who are making less than $100,000 would get any benefits from the proposal," Dr. Reza Hamzaee, Economic Professor at Missouri Western State University, said.
Hamzaee said America is home to 28 million small businesses and farms, but only 12 percent of these companies will actually benefit from the cuts.
"If they are not paying 15 percent or more than 15 percent then what is the impact of that on a small business," Hamzaee said. "There is no real impact on small businesses."
The White House said the cuts will have a positive impact on companies, paving the way for corporations to invest more, produce more and save more.
"I think the fact that taxes would be lowered not only makes the United States more attractive from a business perspective, but also frees up cash that companies are able to use to invest in their business, to expand, to grow jobs and to improve their products," Patt Lilly, president and CEO of the St. Joseph Chamber of Commerce, said.
In the next ten years, Hamzaee said Trump's tax plan will cause the U.S. to be $2.7 trillion more in debt.
"Mark my words. If they [tax plan] are passed, we are going to see huge financial turmoil in the future of this country," Hamzaee said.
The White House believes the tax reform will close loop holes for large corporations. However, this could also be incorrect.
"What will happen is there will be even further growth of loop holes of corporate taxation," Hamzaee said. "This would be big corporations that would take advantage of this."
Hamzaee said if the government fixed the loop holes in the current tax codes they could save up to $2 trillion in income.
Some, like Lilly, continue to stand with Trump's tax reform plan. believing the cuts will benefit everyone.
"Obviously there's work to be done by congress to get it passed and onto the President's desk. We'll see what comes of that," Lilly said. "Overall we are very supportive of the revisions to the tax cut."
Trump said he would like to have a tax reform plan passed by the end of the year.