During a recent meeting of the House Committee on Ways and Means, small business owners from Iowa voiced their concerns regarding the potential expiration of key tax provisions established under the 2017 Tax Cuts and Jobs Act (TCJA). The discussions highlighted the significant impact these policies have had on their businesses and the broader implications for the economy.

Eugene Soukup, representing Sukah Manufacturing, emphasized the importance of maintaining the 21% corporate tax rate and specific estate tax provisions to ensure the sustainability of family-owned businesses across generations. He noted that the tax reforms have contributed to substantial growth in his company, benefiting employees and customers alike.

Lana Paul, who operates multiple small businesses, including a trucking company and a commercial warehousing firm, shared her family's entrepreneurial legacy and the challenges they face. She pointed out that the small business deduction and expanded bonus depreciation under the TCJA have been crucial for reinvestment and growth. However, she expressed concern over the uncertainty surrounding these provisions, particularly as they are set to expire at the end of 2025. Paul highlighted the rising costs of equipment and the potential negative impact on her ability to expand operations if tax benefits are reduced or eliminated.

The meeting also touched on the estate tax, with Paul sharing a personal story about her husband's recent passing and the importance of succession planning for family businesses. She urged Congress to consider the long-term effects of the estate tax on small businesses, advocating for either its elimination or the preservation of the expanded exemption established by the TCJA.

In addition to tax policy discussions, the committee addressed the child tax credit, which is also set to be halved if current provisions expire. A member of the committee highlighted the importance of this credit for working families, particularly in light of rising costs associated with child care and therapy services.

The testimonies from these small business owners underscored a common theme: the need for legislative action to provide certainty and support for small businesses, which are viewed as the backbone of the American economy. Without timely intervention, millions of small businesses could face significant tax increases, jeopardizing their ability to create jobs and contribute to their communities.