No matter who wins the presidential election on Nov. 5, they will face critical decisions as soon as they take office in January. One will directly affect whether small businesses like mine can continue to invest in our people and communities, or face yet another tax burden that forces us to cut back – ultimately hurting Maine and everyone who calls it home.

At the heart of this coming crisis is the small business deduction, a vital component of the federal tax cut law enacted in 2017. This deduction allows over 90% of small businesses to save 20% of our income on our tax returns, enabling us to compete with larger corporations. Without it, we’ll be at a significant disadvantage. Yet small businesses are essential drivers of innovation, job creation and community engagement. As small businesses, we generate the majority of new jobs and play active roles in our local communities. We need this relief to keep making a meaningful impact.

The deduction is set to expire next year unless Congress and the next president take immediate action to preserve it. This relief is especially crucial considering that the 2017 tax cut law granted permanent benefits to large corporations. If big businesses receive these economic advantages, it’s only right that small businesses do as well. Ensuring equal treatment for all businesses is a fundamental issue of fairness that must not be overlooked.

My staffing firm, which primarily serves other small businesses in central Maine, knows firsthand how much this tax cut matters. Thanks to the deduction, we’ve been able to remain competitive and retain our employees. When this law was passed, one of the first things we did was cover 100% of our team’s health insurance premiums – a significant expense that costs us tens of thousands of dollars each year. We can only do this because of the tax cut. Additionally, we’ve used the savings to upgrade our computers and infrastructure, allowing us to compete more effectively with national and international staffing firms.

If the tax cut expires, running small businesses will be much more challenging than it was before 2017. Since then, both Washington, D.C. and Maine’s own legislature have imposed new mandates and regulations that complicate and increase the cost of running a small business. For example, our state’s new paid family and medical leave mandate adds another financial burden starting on Jan. 1, 2025. It will be hard enough to absorb this new cost, and it will become dramatically harder if the tax cut is also taken away.

The next president and Congress must act to prevent this from happening. They need to correct the oversight from 2017 by granting Main Street the same permanent relief that Wall Street received. If they fail to act, small businesses like mine will be faced with tougher times ahead. We’ll see large corporations outpace us, while we will be forced to scale back our investments in our businesses, our employees and our communities. The loss of this deduction could spell disaster for many small businesses. Some may not survive.

The small business deduction is more than just a line item on a tax return; it is a lifeline for countless small business owners striving to make their mark in their communities. Ultimately, this tax cut is an investment in innovation, job creation and economic stability – one that pays dividends for everyone involved. As a small business owner, I know firsthand that we have to level the playing field for these critical job creators.

Main Street doesn’t need a massive tax hike. For the sake of Maine, we need permanent tax relief – now.

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