by Gary Desilets
Ahead of the November midterms, Republicans are preparing to make President Trump’s tax relief permanent.
House Republicans have introduced legislation to lock in tax cuts beyond 2025, when they are currently set to expire. The legislation also would maintain the standard deduction, which increased to $12,000 per individual and $24,000 for a married couple, and keep the special deduction for pass-through small business owners. (Pass-through business owners are taxed at their individual marginal rates, thereby “passing” business income on to personal income.)
In the words of House Ways and Means Committee Chairman Kevin Brady (R-TX): “This legislation is our commitment to the American worker to ensure our tax code remains the most competitive in the world.”
He’s spot-on. Small businesses need permanent tax relief, which will make it much, much easier for them to grow the U.S. economy.
Our economy depends on small business. America is home to more than 30 million small businesses, which employ nearly 60 million workers—half of the U.S. workforce. In fact, small business accounts for 99.9 percent of all American businesses.
This story can also be told in Virginia, which is home to just under 724,000 small businesses. Many of them our exporters who connect Virginia to other states and foreign economies. In our state, 1.5 million employees—47 percent of the Virginia workforce—depend on small business for their current employment and financial stability.
We need to support these job creators with pro-business policies, which President Trump and Republicans in Congress have prioritized for months. Tax cuts, for example, allow employers to keep more of their hard-earned money, making it easier to invest that money in hiring, pay raises, and other ventures.
That’s exactly what the federal tax bill accomplished. By decreasing rates and increasing deductions, elected officials finally extended an olive branch to the business community, giving job creators the shot in the arm they need to finance expansion.
As a small business owner, I’ve seen it firsthand. I own Deckscapes of Virginia, a deck builder in Catharpin. Because of my tax savings, I was able to hire additional workers and expand our business operations. Moreover, we opened individual retirement accounts (IRAs) for all of our employees, helping them prepare for life after work. That’s how tax cuts work: More money in my pocket eventually means more money in the pockets of my employees.
I’m not alone. Countless businesses across Virginia have used their tax savings for the greater good. Take Newport News-based Bay Electric, which not only hired 12 electricians and two project managers, but also invested more than $500,000 in new trucks and additional equipment. Or consider Fredericksburg-based Payne Trucking, which dished out $750 bonuses to boost Payne employees’ financial well-being.
Let’s build on this positive momentum. There’s no reason not to make federal tax cuts permanent, on behalf of employers and employees.
That’s exactly what Republicans should do. Forget politics for a second. Do the right thing for the U.S. economy.
Gary Desilets is the owner of Deckscapes of Virginia in Catharpin.There are currently no comments highlighted.