Ernst: Here’s How Congress Can Save Millions Of American Jobs

Originally published in The Daily Caller

Eight years ago, I worked with President Trump to enact the most significant simplification of our tax code in decades, the Tax Cuts and Jobs Act (TCJA), also known as the Trump tax cuts.

These tax cuts provided relief to every American, simplifying and reducing personal income taxes, and expanding important deductions used by small businesses across Iowa.

These changes have allowed entrepreneurs to thrive and contributed to the incredible success we saw during the first Trump administration, which led to strong real wage growth for workers and the lowest unemployment rate in 50 years.

A thriving Main Street is especially important in Iowa where small businesses account for 99% of all businesses and employ 82% of workers, accounting for more than 507,000 jobs.

As the chair of the Senate Committee on Small Business and Entrepreneurship, I am working to ensure that these historically successful tax cuts that allowed small businesses to grow and invest in communities are not just extended but made permanent.

The stakes could not be higher. If Congress fails to act, the American people will be hit with a $4 trillion tax increase, the largest in history.

Small businesses will be hit particularly hard, as over 96% of small businesses are structured as pass-through entities that benefit from key provisions, including the qualified business income deduction and the general reductions in personal income tax rates.

The Trump tax cuts empowered small business owners to invest in themselves through provisions like bonus depreciation, enhanced business expensing, and the research and development deduction.

More importantly, the tax relief enabled small businesses to invest more in their employees. I’ve heard from small business owners all over Iowa who used that extra money to provide their workers with health insurance, parental leave, and retirement plans. 

I have also talked to small business owners who hired staff and expanded, but who would have to make hard decisions about who to keep if these cuts were to expire.

When I talk to Iowans the message is clear – they don’t want a trillion-dollar tax hike.

Workers are also concerned that if employers must give more of their revenue to Washington, jobs and benefits will be cut. The consequences will be real for workers and their families. 

The Trump tax cuts also reduced the death tax, giving families the ability to keep their farms and businesses after a loved one’s passing. While this is a great start, we need to fully repeal the punitive death tax. Ending the death tax is particularly important in Iowa to prevent folks from being forced to sell off farms or businesses that have been in their family for generations. 

If Congress lets the TCJA expire now, Americans and small businesses will be forced to shoulder another $4 trillion in new taxes and 4.1 million jobs will be at risk.

When small businesses grow, the American economy grows. 

That’s why I strongly support making the Trump tax cuts permanent and will fight to ensure that small businesses continue to have a voice in Washington.

Originally published in The Daily Caller

Joni Ernst, a native of Red Oak and a combat veteran, represents Iowa in the United States Senate.

Click here for an official portrait of Senator Ernst.

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