The Pennsylvania Chamber of Business and Industry and Americans for Prosperity (AFP) Pennsylvania launched a joint campaign on May 5, urging Congress to make permanent the small business provisions of the 2017 Tax Cuts and Jobs Act (TCJA), which are set to expire at the end of the year.
“Pennsylvanians are counting on Congress to deliver a win by extending the Tax Cuts and Jobs Act of 2017,” said AFP State Director Emily Greene. “If our delegation doesn’t act, taxpayers will face an average increase of more than $2,300 per year. After four years of record-high inflation, we simply cannot afford to pay more.”
The TCJA permanently reduced the federal corporate tax rate from 35 percent to 21 percent and included several provisions that benefit small businesses, such as the 20-percent deduction for qualified business income for pass-through businesses known as Section 199A.
The Section 199A deduction has allowed millions of small business owners to reduce their tax liability and reinvest in their operations, employees, and communities, according to the chamber and AFP Pennsylvania.
The law also expanded research and development tax credits and improved asset depreciation and business expensing.
“Failing to renew these tax provisions would deal a serious blow to Pennsylvania’s economic competitiveness,” said PA Chamber President & CEO Luke Bernstein. “Small businesses across the commonwealth are already navigating workforce shortages and dramatically higher costs compared to 2017.
“The last thing they need now is a higher tax burden that makes it harder to hire, invest and grow. We have an opportunity — and a responsibility — to come together and give small business owners the certainty they need to succeed,” Bernstein added.
Launched in recognition of National Small Business Week, the campaign will include the release of a series of videos highlighting the voices of business leaders, taxpayers and policymakers who support extending these policies, said the PA Chamber and AFP.
The effort is an extension of AFP’s $20-million nationwide campaign in support of the TCJA — the single largest investment of any outside, limited-government conservative organization toward protecting the pro-business tax provisions.
“Here’s the good news: Congress can prevent this tax hike by extending key provisions of the TCJA, allowing taxpayers and business owners to continue to thrive,” Greene said. “We’re encouraging Pennsylvanians to take action today by visiting ProtectProsperity.com, where they can see how these tax changes would impact them.”