The Job Creators Network, a leading advocate for small businesses in the United States, has collaborated with groups like the Faith and Freedom Coalition and Americans for Tax Reform to encourage House Speaker Mike Johnson (R-LA), Senator John Tune, and others in Congress to support President Donald Trump’s job initiative.
“We appreciate the House Republicans’ plan to cut taxes and make reductions permanent, especially by increasing the small business tax deduction from 20% to 23%,” stated a letter released this week. “This tax credit benefits over 95% of U.S. businesses that are structured as pass-through entities, taxed at the owner’s individual income rate.”
“This encompasses millions of family-run small businesses, including third-generation operations, a construction company with 15 employees, and family-owned dry cleaners that support local sports teams,” the letter elaborated. “These aren’t large corporations or Wall Street entities. They’re businesses started by dedicated American families who took risks, created jobs, and invested back into their communities.”
The letter also cautioned Republican leaders against any tax increases on seniors, many of whom are small business owners.
“We are apprehensive about proposals to elevate marginal income tax rates, which would severely impact America’s small businesses—the backbone of our economy,” it noted. “Though such increases might be framed as targeting ‘wealthy’ individuals, they are actually detrimental to the very sector that generates jobs for small and medium enterprises.”
It continued: “Tax hikes could deter hiring new employees, trigger delays in expansion plans, or compel businesses to downsize. Family-owned small businesses understand their circumstances far better than federal bureaucrats.”
Many family businesses experience temporary spikes in revenue due to lucrative contracts after years of struggle. Raising taxes on these businesses can punish the hard work they’ve put in. Sometimes, families might briefly cross into a higher tax bracket, but those funds are essential for sustaining the business over the long haul.
When considering state and local taxes, the overall tax burden could approach or even surpass 50%, which discourages growth and job creation. Such punitive measures are not only poor fiscal policy but also anti-growth and detrimental to families and workers. This approach is strikingly similar to the policies presented by the Biden-Harris administration in their last budget proposal.
President Trump’s significant legislative proposal, shaped by House Republicans, includes key tax and spending provisions that are gradually advancing through critical House committees. The House Budget Committee will soon review this package, with hopes of sending a spending bill to President Trump by July 4th.
“We are committed to ensuring that the House Republican tax proposals do not incorporate the highest marginal tax increase,” the letter asserted. “We urge leaders in both chambers to uphold this principle as the settlement act moves toward consideration and approval.”
“Rather than penalizing small businesses and their employees, Congress should focus on expanding tax cuts and enhancing employment opportunities. This includes ensuring complete cost coverage for small business investments and maintaining the full 20% tax credits for small and medium enterprises,” the letter stated.
“There is a misconception that using a Congressional majority to make the TCJA permanent while raising taxes on the wealthy will somehow benefit everyday Americans. This approach fails to understand the complexities of the small business landscape that sustains family economies.”
