Congress has a decision to make: stand up for American small businesses or allow a tax code to return that punishes the very people building our communities. That’s what’s at stake as lawmakers debate whether to extend key provisions of the 2017 Tax Cuts and Jobs Act (TCJA).

Passed early in President Donald Trump’s first term, TCJA delivered sweeping reforms that led to explosive economic growth, record-low unemployment, and rising household incomes. But unless Congress acts before the end of this year, the expiration of these provisions will amount to the largest tax increase on small businesses in modern history.

Small businesses—over 96% of which are structured as pass-through entities—were among the biggest beneficiaries of the TCJA. The 20% qualified business income deduction (Section 199A) allowed entrepreneurs to reinvest more of their earnings into expanding operations, hiring staff, and improving worker benefits. This one provision alone delivered more real value to Main Street than any corporate tax break.

The TCJA also allowed immediate expensing for equipment and machinery—what’s known as bonus depreciation. That meant a small manufacturer could fully deduct the cost of new tools and upgrades in the year of purchase, rather than over a decade. Without it, small business owners are again forced to spread deductions out over as long as 20 years— where the future value of deductions is rapidly eroded.

Since 2022, the tax code has already begun phasing back in these outdated provisions. Tech startups, for example, now must delay deductions for up to 90% of R&D expenses, including employee wages and patent costs. These are expenses that fuel innovation and growth, yet the current policy punishes them with red tape and delayed relief.

And then there’s the death tax. Under TCJA, many family-owned farms and businesses were shielded from devastating estate taxes. But if the provisions expire, those protections vanish. The result? Grieving families could be forced to sell the farm just to pay the government. That’s not only unjust—it’s economically destructive.

This isn’t speculation. Business owners across the country are already scaling back expansion plans and bracing for a potential wave of new tax liabilities. They’ve told lawmakers what these cuts mean: more money for health insurance, retirement benefits, and even parental leave. Without the certainty of the TCJA, many may be forced to reduce staff or close their doors altogether.

Critics often mischaracterize this as a debate over corporate tax cuts—but that’s a false narrative. The real hit will come to small, family-run, community-rooted businesses. Wall Street may feel a bump; Main Street will feel a blow.

And it’s not just about economics—it’s about trust. In an era where confidence in major institutions is at an all-time low, small businesses remain among the most respected and reliable pillars of American life. Stripping them of tax relief after weathering COVID lockdowns, inflation, and regulatory burdens sends the wrong message at the worst possible time.

The Tax Cuts and Jobs Act wasn’t perfect, and no one is suggesting that reforms can’t be made. But letting it expire in full would be a reckless move—one that jeopardizes jobs, slows innovation, and undermines the very engine of the American economy.

Congress must choose: retreat to a tax system that penalizes growth, or double down on a policy that empowers builders, risk-takers, and job creators. For the sake of Main Street, the answer should be clear.