As the husband of a small business owner and the leader of a Dayton-area business association—where more than 90% of our members are small businesses—I see firsthand how critical every dollar is to the success and sustainability of these enterprises.
Whether continuing a generational legacy or building one for the future, small business owners work tirelessly every day. Every dollar kept in their hands is a dollar that fuels growth, job creation, and economic vitality in our region.
Yet at the end of this year, key provisions of the TCJA—including the QBI deduction and lower individual tax rates—are set to expire. Without congressional action, small businesses and individuals will face significant tax increases.
The elimination of the 20% QBI deduction and increases in five out of seven individual tax brackets—some by as much as 4%—could mean up to a 10% tax hike for many small business owners. In total, more than 62% of individual tax filers would see their taxes go up if the cuts aren’t renewed.
If taxes increase on small businesses, it will limit employer’s ability to invest in their workforce and operations.
The message from local business leaders is clear: this is not the time to raise taxes on America’s job creators. Last week, I joined a roundtable with Senator Jon Husted and local business owners where renewing the TCJA tax cuts was a top priority and Husted relayed his support.
Senator Bernie Moreno echoed his support during a recent address to Dayton Area Chamber members in March, and Congressman Mike Turner, who backed the original TCJA, has expressed his support of its renewal. Our local delegation is aligned—it’s time for Congress to act.
This renewal effort also presents an opportunity to fix another policy that’s harming small businesses: the five-year amortization of research and development (R&D) expenses, which has been in place since 2022. T
his provision forces businesses to spread out the deduction for R&D costs over five years, instead of allowing them to deduct the full cost in the year it’s incurred. It creates an unnecessary administrative burden, discourages innovation, and makes it harder for small firms to take the calculated risks that drive growth.
Washington has a chance to send a strong message to the small businesses that power our economy: you matter. Renewing the TCJA tax cuts and restoring immediate R&D expensing would give small business owners the certainty they need to invest confidently in their people and their future.
As lawmakers in Washington debate these policies, I urge them to remember the people on Main Street here in Dayton and across the country. Small business owners are not just the backbone of our economy—they are our neighbors, our community leaders, and our biggest believers in the American dream. Let’s not allow politics to undermine their hard work.
Chris Kershner is the president and CEO of the Dayton Area Chamber of Commerce.
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