5 September 2024 Traci Tapani, co-president of a sheet metal shop, Wyoming Machine Inc. in Minnesota, says her small business needs a tax code that provides certainty for planning business operations. “I need to plan and know how much money I’m going to be paying the federal government, so I can make decisions about what I can invest in my business,” says Tapani. “As a small manufacturer, I just can’t keep spending to cover unplanned expenses. It makes business harder.” Why should Congress extend the 2017 tax reforms? Larry Kidd, president and CEO of ThinkHire, a staffing agency in Ohio, says taking away the tax reforms would hinder future growth of small business. “I’m concerned about government regulation and overtaxing. Because when they take that away from us, it substantially decreases our ability to grow,” says Kidd. “Some tax reforms have already expired. Our tax liability has gone up by almost 30%, and that limits our ability to invest in additional jobs, make new products, and innovate in new areas of opportunity,” says Kaddas. “I am worried about 2025 and the additional tax cliffs that we’re facing,” if the reforms aren’t made permanent. The 2017 tax reforms created opportunity for growth and investment in U.S. businesses, and owners say that a roll back would hamstring their ability to capitalize on important investments— including manufacturing supply chains. What is the 20% deduction for pass-through businesses and why is it important? In 2017, as part of the TCJA, Congress passed a permanent reduction to the corporate income tax rate from 35% to 21%. And to ensure that pass-through businesses like sole proprietorships, partnerships, and S corporations weren’t put at a tax disadvantage relative to C corporations, Congress created a new—but temporary—20% deduction for qualified business income. Unlike the lower corporate rate, the 20% deduction for pass-through business is temporary, and it’s scheduled to expire at From the Executive VP Continued →
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