Ernst Pushes to Make Trump Tax Cuts Permanent for Small Businesses

WASHINGTON – Today, at a joint hearing of the House Committee on Small Business and the Senate Committee on Small Business and Entrepreneurship, Chair Joni Ernst (R-Iowa) delivered opening remarks on why Congress must keep taxes low to unleash prosperity on Main Street.

Ernst detailed how the Trump tax cuts must be made permanent to keep tax relief in place that fueled incredible growth and job creation during President Donald Trump’s first term.

Watch Chair Ernst’s full remarks here.

Ernst’s full remarks:

“Thank you, Chairman Williams. I appreciate your friendship and our ability to work together on behalf of America’s small businesses. 

“I am glad that we can hold this joint hearing of our two committees today to examine an issue that impacts every small business in America.

“Eight years ago, working alongside President Trump, Congress passed the most significant simplification of our tax code in decades, the Tax Cuts and Jobs Act of 2017, otherwise known as the TCJA.

“The TCJA provided relief to every American, simplifying and reducing personal income taxes, and expanding important deductions used by small businesses across the country.

“These changes have allowed small businesses to thrive and contributed to the incredible growth we saw under President Trump’s first term, which led to strong real wage growth for workers, the lowest unemployment rate in 50 years, and annual GDP growth that reached 3 percent.

“These tax provisions have also allowed small business owners, including our witnesses today, to grow their businesses and reinvest in their communities and employees.

“But the reality is these gains are in jeopardy if Congress allows the TCJA to expire, and Americans would suffer the largest tax increase in history.

“Small business owners will be hit particularly hard if the TCJA expires, as over 96 percent of small businesses are structured as pass-through entities that benefit from the qualified business income deduction and the general reductions in personal income tax rates.

“The TCJA empowered small business owners to invest in themselves through provisions like bonus depreciation, enhanced business expensing, and the R&D deduction.

“More importantly, the TCJA 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 back home the message is clear – they can’t handle a tax hike.

“Workers are also concerned that if employers have to give more of their revenue to Washington, jobs and benefits will have to be cut, on top of the higher taxes they will pay due to individual rate hikes. The consequences are real to workers and their families. 

“I also want to address a tax policy issue of particular concern to Iowans.

“The TCJA reduced the death tax, giving families the ability to keep their farms and businesses after a loved one’s passing. This change was particularly important in my state, preventing families from being forced to sell off farms or businesses that have been in theirs for generations. 

“The bottom line is that America’s small businesses need the TCJA along with the certainty it provides.

“If we let the TCJA expire now, Americans and small business owners will be forced to shoulder another $4 trillion dollars in new taxes.

“When small businesses grow, the American economy grows. 

“I strongly support making the TCJA permanent and will fight to ensure that the interests of small businesses continue to be a priority in this Congress.”

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