Small Business Goes to Washington: Entrepreneurs Visited DC to Discuss Taxes and Other Policy Concerns With Lawmakers

Congress has big plans to reform the tax code this year. To help ensure that America’s diverse small business economy has a seat at the negotiating table, Small Business Majority and Main Street Alliance (MSA) partnered to launch the Small Business Tax Reform (SBTR) Coalition, a national initiative to advocate for a tax code that better prioritizes the needs of America’s entrepreneurs. As part of this work, SBTR hosted an advocacy fly-in event February 24-26 for nearly 30 small business owners attending 60 meetings, offering them a critical opportunity to share their concerns with lawmakers and make it clear that any changes to the tax code that would impact small businesses need to benefit the smallest companies rather than the wealthiest.

During the event, the entrepreneurs attended a welcome reception with U.S. Rep. Mark Pocan from Wisconsin’s second district. The congressman discussed the importance of small business voices in today’s political environment, especially as federally administered programs that support small business growth and success are impacted by the Trump administration. Rep. Pocan was just one of many members of Congress who sat down with SBTR Coalition business owners.

The small business owners also meet with the offices of Sen. Mike Crapo (R-ID), Sen. James Lankford (R-OK), Sen. Ron Johnson (R-WI) , Sen. Thom Tillis (R-NC)  and Rep. Michelle Fischbach (R-MN). In total, the entrepreneurs spoke with over 60 Democratic and Republican member offices and committee staff from small business and tax writing committees. The small business owners emphasized the importance of bottom-up tax reform as Congress considers what to do with expiring provisions in the 2017 Tax Cuts and Jobs Act including Section 199A, which allows pass-through entities (about 95% of all small businesses) to take a 20% standard deduction on qualified business income. The problem with the current version of 199A is that while the highest earning pass-through entities claimed an average deduction of over $1 million in 2021, pass-throughs with adjusted gross incomes below $100,000 took home an average deduction of just $1,997. 

“Most tax cuts go to the biggest businesses and the rest of us are left out in the cold,” said Dwayne Thomas, owner of Greenlight Creative in Portland, Ore.

Instead of keeping 199A as currently written, the entrepreneurs advocated for a $25,000 standard deduction. This would provide the smallest businesses with the targeted, bottom-up tax relief necessary to invest back into their businesses. Mindelyn Anderson, owner of the Mirror Group in Washington, D.C. stressed the importance of this specific tax reform: 

“This is critical,” she said. “Small businesses like mine reinvest tax deductions into our workforce and business. Mirror Group is a values driven, for profit business and we believe it’s important to invest in our team. This also helps us compete in the national and global market.”

Additionally, the small business owners expressed their concerns about the impact of the Trump administration’s tariffs on their businesses. Tariffs are already hurting their bottom lines, and even the threat of new ones creates economic uncertainty and chaos that can negatively impact their businesses. Nancy Clark, owner of Drive Brand Studio in North Conway, N.H. said: “I’m here to make small business voices heard and humanize our issues to our elected officials so they know the difficulties we’re facing. They need to know that tariffs are a killer. I can’t increase our costs anymore, so it will impact my small business greatly.”

All members of the SBTR Coalition also had the opportunity to speak with U.S. Senate Finance Committee Ranking Member Ron Wyden (D-OR) and his staff. Sen. Wyden discussed his work on the Senate Finance Committee to level the playing field for small businesses, and asked for their input on Section 199A reform. He also emphasized the importance of small business advocacy to the legislative process and urged the small business owners to continue to make their voices heard by all levels of government.

Finally, Janna Rodriguez, owner of The Innovative Daycare Corp. in Freeport, N.Y, had the opportunity to speak at the Congressional Dads Caucus to highlight how Congress can best support childcare providers and their workforce to ensure they can continue to effectively serve their local communities. Throughout the fly-in, small business owners also advocated for reinstating the temporary expansion of the Child Tax Credit (CTC) to put money back into the pockets of entrepreneurs.

“Our voices won’t be heard if we don’t tell our stories,” Janna said. “Storytelling is pivotal to the creation of policies that impact our small businesses, which are critical to a robust economy.”