The Bismarck Tribune recently featured an op-ed by Dawn Hager and Karen Schmidt, the owners of Balancing Goat Coffee Co. in Mandan, North Dakota. The authors, who are also members of the National Federation of Independent Business (NFIB), have called on Congress to make the small business deduction a permanent fixture of tax legislation. The deduction, which originated with the Tax Cuts and Jobs Act of 2017, is set to expire next year unless Congress acts to extend it.
In their op-ed, Hager and Schmidt emphasize the importance of this deduction for small businesses. They express concern that, with the 2024 election cycle dominating the headlines, a critical issue that affects businesses like theirs is being overlooked. They describe small businesses as “the cornerstone of North Dakota communities and the engines of the American economy” and call on lawmakers in Washington, D.C., to address this issue to prevent long-term damage to the small business economy.
The authors elaborate on the post-pandemic benefits provided by the Small Business Deduction, stating, “When the pandemic ended, the Small Business Deduction helped us get back on track, fast. Today, we have 30 employees — more than we ever dreamed. We’re investing in new equipment while experimenting with new products.” They explain that the deduction has allowed them greater financial freedom to expand their business, which would be restricted if the deduction expires.
Furthermore, they warn of the broader impacts, noting, “But if Congress lets this tax cut expire, we’ll quickly have to scale back. That’ll be devastating — and not just to us. Our workers will suffer, since we’ll have fewer jobs and won’t be able to offer as many raises. Our customers will suffer, because we’ll have to raise prices, not only because we’re getting hit, but also because all our suppliers are getting taxed more.”
Hager and Schmidt’s call for action underscores the potential repercussions of the deduction’s expiration for small businesses and their surrounding communities.
