Small Businesses tell policymakers how taxes affect them

Rachel Ledbetter
Senior Manager, Communications and Strategy, U.S. Chamber of Commerce

Published

October 10, 2024

In 2025, lawmakers will have the opportunity to advance pro-growth tax policy as they work to avoid the largest tax increase in American history at the end of the year, when many important provisions from the 2017 Tax Cuts and Jobs Act (TJCA) are scheduled to expire.

Ahead of the 2025 tax cliff, more than forty members of the U.S. Chamber's Small Business Council—a policy and advocacy steering committee of small business owners—went to Capitol Hill this week to meet with congressional offices and talk with media outlets to share stories on how tax policies impact them.

a group of people posing for a photo in front of a building — Members of the U.S. Chamber’s Small Business Council visit Capitol Hill to tell their stories on how tax policy impacts them.

Their primary messages were:

The 20% pass-through deduction provides them capital for reinvestment in operations and workforce;

A low corporate tax rate positively impacts them through supply chain and consumer spending; and

R&D is not only an investment in technology but also an investment in people.

These small business owners also stressed the importance of smart tax policy that fosters economic growth in their communities and across the country.

Before they went to meet with lawmaker offices on Capitol Hill, they met with the tax counsel to a senior Republican Senator for a Q&A period that included discussion of what a tax package next year might include.

While on Capitol Hill, they met with staff from House and Senate offices from the Arizona, Utah, Illinois, Maryland, and Virginia delegations.

In their words

“So, whether it is the ability to deduct capital purchases immediately, savings from the 20% pass-through deduction, or R&D expensing—all of these things are helping us grow because we don't necessarily have the balance sheets that big businesses have.... These things are critical to millions of businesses, so much so that a lot of them don't even realize the impact the expiration of the Tax Cut Jobs Act will have on their businesses.” - Mike Zaffaroni, owner of Liberty Landscape Supply in Jacksonville, Florida
“There's an ecosystem of large and small companies that all work together to supply the products that are made in the United States. A tax code that's competitive for all of us supports the industry and helps manufacturing in the U.S. grow.” - Traci Tapani, co-president of sheet metal workshop Wyoming Machine Inc. in Stacy, Minnesota
“A competitive tax code is particularly important for us because since 2017, we have grown from 24 employees to 130. What that takes in terms of infrastructure, capital equipment, and general investment in our company to be able to sustain that growth, it's absolutely not possible if we end up losing that tax advantage.” - Victoria Thomas, CFO and co-owner of Kellymoss in Madison, Wisconsin
“When we use the term competitive tax code, what we're essentially saying is a tax code that helps small businesses grow. Essentially what that means is instead of having that money and paying tax on it, taking that money and then reinvesting it back into the business.... That could look like providing health insurance for our staff, doing a 401(k) match, or buying more inventory or equipment. That's why having a competitive tax code allows small businesses like mine to reinvest.” - Hrag Kalebjian, owner of Henry’s House of Coffee in San Francisco, California

Lights, camera

While on Capitol Hill, several members of the Small Business Council interviewed with ASBN - America's Small Business Network. The business owners talked to ASBN co-founder and anchor Jim Fitzpatrick about how federal policies impact their businesses.

a group of men standing outside a building — Ian MacLean, President of Highland Landscaping in Southlake, TX, talks with ASBN's Jim Fitzpatrick.

Stay tuned: The Small Business Council will return early next year to redouble its advocacy in the next Congress.

Bottom line: Smart tax policy is critical to American businesses, and delivering this message to candidates and members of Congress is a key priority for the Chamber this year.

Learn more about the Chamber’s Growing America’s Future Campaign, which calls for competitive, pro-growth tax policies to grow the economy, raise wages for workers, and improve the standard of living for all Americans.