The Trump administration on Wednesday unveiled a budget proposal that includes $150 million for small business tax credits.
The proposal comes amid a growing movement among businesses to raise the tax rates for all wage earners, including for some workers who make more than $150,000 per year.
Trump, who is currently under fire for his budget proposal to cut funding for programs that help the poor, is currently seeking re-election.
“It’s good news for businesses, good news, but it’s also good news to small business,” said Richard Fisher, president of the National Association of Manufacturers, a business group.
Fisher said the Trump administration has “a number of things” on its plate.
Among them, Fisher said, is the need to reduce the corporate tax rate from 35 percent to 25 percent, and also to eliminate the estate tax.
While the plan includes a number of tax breaks, the biggest one for businesses is the elimination of a tax credit for sales to individuals.
The tax credit has been criticized by the National Retail Federation, which said it could raise as much as $20 billion a year in additional revenue.
As a result, the Trump plan, which was published in the Federal Register, includes a provision that allows businesses to use a small business credit to lower the amount of taxes that they have to pay on purchases from people other than employees, the NAMF said in a statement.
The $150-million investment will help businesses that need to refinance their debt and make loans to customers.
“It will also help small businesses by increasing the supply of capital, helping them expand and boost hiring,” the proposal reads.
According to the Office of Management and Budget, the proposal would reduce the deficit by $9.6 billion over the next decade.
But Fisher said that while some of the benefits could be seen as beneficial to businesses, others could be offset by higher costs.
A number of small business owners and business groups have been pushing the administration to include additional tax breaks.
For example, the American Beverage Association has said the proposal “will allow companies to deduct the cost of their goods and services from their taxes.”
The U.S. Chamber of Commerce also said the tax plan could cost small businesses $1 billion annually.
Still, the Chamber, which represents some 2.7 million small businesses, has not opposed the plan.
In addition to the tax credit, the plan would eliminate the death tax, a tax on income that is not taxed when a person dies.
The plan also includes a proposal to eliminate a tax deduction for charitable contributions.
Democrats have been criticizing the Trump budget proposal for proposing a reduction in the corporate rate from its current 35 percent.