by Ryan Egly
Small businesses have consistently supported and expressed optimism about the impacts of the Tax Cuts and Jobs Act of 2017. But now, many are growing concerned that Congress won’t act in time to renew the law or extend key parts of it that are about to expire. That kind of uncertainty makes it harder for small businesses to plan ahead—and often leads them to hold off on the investments that help our local communities thrive.
That’s why I’m urging lawmakers in Washington, including Senator Blackburn, Senator Hagerty, and Congressman DesJarlais, to take action. It’s time to renew the TCJA and bring back the provisions that have already expired. These reforms have helped countless businesses in Lawrence County, across Tennessee, and beyond; failing to restore and make them permanent would deal a devastating blow to small-business owners nationwide.
The TCJA benefitted Tennessee businesses in several important ways—by lowering the corporate tax rate, by including the 20% Small Business Deduction, and by doubling the child tax credit, among others. However, these reforms are set to expire at the end of the year, making it critical for Congress to act swiftly to prevent a massive tax hike on U.S. businesses of all sizes, including smaller companies, startups, and Main Street, mom-and-pop shops.
The 2017 tax law also included critical provisions that have already expired, including ones that allowed businesses to fully expense new equipment and to immediately expense R&D investments. Congress needs to work just as hard on restoring and making these provisions permanent as it does on extending the TJCA cuts and deductions set to expire soon.
In Tennessee, we still make things. Manufacturers employ nearly 350,000 Tennesseans and supports more than 2,200 families in Lawrence County. Just like all businesses, these manufacturers also rely on the pro-growth tax reforms made by the TCJA. According to estimates by the National Association of Manufacturers, failing to preserve these policies could put 129,000 manufacturing jobs at risk.
It’s clear that lawmakers need to extend the historic tax cuts and reforms from the Tax Cuts and Jobs Act. But as they work out the details, they shouldn’t use this moment as an excuse to raise the corporate tax rate. One of the most impactful parts of the TCJA was cutting that rate from an uncompetitive 35% down to 21%—a move that helped bring jobs back home, encouraged investment, and strengthened America’s ability to compete on the world stage.
Keeping the corporate tax rate low isn’t just good policy, it’s a key part of keeping products made in America, businesses rooted in our communities, and opportunities growing here at home.
Not only did lowering the corporate income tax rate help increase America’s global competitiveness, it also provided new incentives for small businesses to restructure themselves as traditional c-corporations to take advantage of these lower rates. Going back to a higher, less competitive rate will risk our standing in the global economy, while amounting to major tax increases on small businesses, particularly given that nearly three in four C-corps have fewer than 10 employees.
Providing tax stability for small businesses by extending or renewing the TCJA should be something that all lawmakers support, regardless of political party. However, given that the law was perhaps the single-most important and popular pieces of legislation passed during the first Trump Administration, it stands to reason that this should be a particularly important priority for Republicans.
For that reason, Senator Blackburn, Senator Hagerty, and Congressman DesJarlais should lead the effort in Congress to renew the TCJA and extend, if not make permanent, the economy-growing tax cuts and reforms that it originally implemented. Doing so would be a tremendous sign of good faith for Tennessee’s business community—Main Street businesses and manufacturers alike.
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Ryan Egly is the President & CEO of the Lawrence County Chamber of Commerce located in Lawrenceburg, Tennessee. A leader in rural economic & community development, the organization represents more than 500 businesses and has facilitated the creation of more than 1,600 jobs since 2018.
