The column below reflects the views of the author, and these opinions are neither endorsed nor supported by WisOpinion.com.
When President Trump turned his attention to revitalizing American business, he turned to Wisconsin. He came to our state with a pledge to defend our workers and protect our jobs.
His plan to “reduce the crushing tax burden that is harming our companies and our workers,” was right when he first took it to Congress. And it’s right now, with the year’s legislative session headed into its final months.
For nearly all of America’s 30 million small businesses, the cornerstone of the tax plan is a historic reduction in the so-called “pass-through” rate, better known as the main street business rate, they’re hit with every year. Because the federal government applies the highest possible individual tax to “pass-through” firms, small businesses can lose as much as 40 percent of revenue right off the bat, with state and local levies bringing the total closer to half of all income.
It’s not only destructive to small businesses, but everyone who relies on their success. In many states, if not all, the prosperity of small business is inextricably linked to economic prosperity writ large. Wisconsin is hardly alone in counting one of two jobs small business jobs.
In sheer numbers, small business outnumber other firms by a huge margin. Almost 100 percent of Wisconsin firms are small businesses, with comparable rates spread across the heartland and the country as a whole.
Imagine the transformative impact of tax cuts, which will incentivize job creators to expand business operations and hire new employees. The heavy tax burden placed on the folks we count on for economic growth and financial security becomes outrageous.
For states with economically and socially troubled areas, whether rural, suburban, or urban, residents rely even more than usual on small businesses. Families, neighbors, truckers, artists, tourists, and hunters—to name a few—come together and work together through small business.
I am the owner and President of The Neylon Group, a commercial facilities maintenance company based in Waukesha. I founded my first business at the age of 19. I know that small business isn’t just the backbone of local and state economies. It’s a fabric that knits communities together.
And surveys show most small businesses nationwide know they would too. Countless small business owners are ready to put their savings in more hires, bigger paychecks, additional locations, and new equipment.
That’s the kind of productivity small business is known for, building economic growth on sturdy, reliable foundations. It’s the kind Americans want from tax relief, too. The tax cut for small business are now even more popular than tax cuts for respondents’ own families. Americans say it ought to be a bipartisan priority. When voters speak like that, Congress ought to listen and act.
Our economic recovery is not complete. But the right response from America’s elected representatives will make good on the optimism small business owners rightly feel with the Trump administration in charge. Relieving the crushing tax burden on small business will lighten the load for all of us.
— Neylon, R-Pewaukee, represents the 98th Assembly District.