Small Business Owners Advocate for Extension of Trump-Era Tax Cuts
In the nation’s capital, a fervent appeal from small business owners resonated through the halls of Congress as they called for the extension of the Tax Cuts and Jobs Act (TCJA) of 2017. With the law set to expire at the end of 2025, entrepreneurs from West Virginia and Wisconsin shared their experiences before the House Committee on Ways and Means, emphasizing the positive impact of the tax cuts on their ability to reinvest in their businesses.
The TCJA introduced a series of tax deductions, including one that allowed certain business owners to deduct up to 20% of qualified business income. This provision, alongside temporary tax reductions on new equipment and other assets, is now phasing out. Individuals also benefited from lowered marginal tax rates and an increased standard deduction and child tax credit. Meanwhile, large corporations experienced a permanent tax rate cut from 35% to 21%.
Committee Chair Jason Smith highlighted the urgency of the situation, warning of a potential massive tax hike if Congress fails to act. However, Democrats criticized the TCJA as a boon for corporations at the expense of ordinary Americans. Labor economist Kathryn Anne Edwards from the RAND Corporation supported this view, suggesting that extending the law could cost trillions over the next decade.
Business owners like Michael Ervin, founder of Coal River Coffee Company, countered by sharing personal accounts of how the TCJA’s Small Business Deduction has been crucial for growth and competitiveness. Ervin detailed the stark contrast in tax rates he would face compared to larger competitors if the deduction were not extended.
Austin Ramirez, CEO of Husco International Inc., echoed these sentiments, crediting the TCJA with enabling significant renovations and investments in his manufacturing business. He also expressed support for the Tax Relief for American Families and Workers Act, which aims to revive certain expired tax incentives.
As negotiations continue, Congress is reminded of the bipartisan support some provisions of the TCJA have received. The House has already passed legislation earlier this year with strong bipartisan backing, though it currently faces challenges in the Senate. Business owners remain hopeful that lawmakers will recognize the importance of these tax measures for sustaining growth and innovation.
