MICHELLLE GALLAGHER: Main Street Will Be Devastated If Congress Drops Ball On Extending Trump Tax Cuts

From Main Street shops to manufacturers, small businesses are the backbone of the American economy, creating good jobs and driving innovation. The possibility of the expiration of certain provisions in the Tax Cuts and Jobs Act (TCJA) at the end of this year are of the biggest concerns for these businesses. And with recession fears in the news, Congress must act quickly to make these tax provisions permanent and help protect the economic gains achieved under the TCJA. Doing so would help ensure a strong, growing economy heading into 2026 and the midterm elections.

In my recent testimony before the House Committee on Ways and Means, I provided a first-hand glimpse into the unique, economic fabric of our country that is family-owned businesses, who are faced with the prospects of a $4.5 trillion tax increase and how that might impact their community, businesses and larger economy. 

The TCJA contains policies that are critical to small businesses that operate as pass-through entities – such as sole proprietorships, partnerships and S-corporations – which constitute the vast majority of businesses in the U.S.. These Main Street businesses are not taxed as traditional well-known corporations, instead their income is “passed-through” to the owners and taxed at the their individual level.