In 2017, I stood on the steps of the U.S. Capitol with then-Chairman of the Ways and Means Committee Kevin Brady to push for passage of the Tax Cuts and Jobs Act. I had been invited to share my story as the owner of a family-run business and explain how tax relief would help both our company and our employees.
I spoke about how we consider our employees to be family and how cutting taxes would allow all of us to grow together. Since the passage of the 2017 Tax Cuts and Jobs Act, our investments in equipment and workers have increased, fueling economic growth, but if Congress does not act this year, both our business and our employees will be hit with a massive tax hike.
Let’s go back to the beginning. My wife Sarah and I started Patriot Aluminum in 2010 with 1,000 square feet of space and one manual conduit threading machine I purchased on eBay. Like so many small businesses in America, we encountered both triumphs and setbacks along the way, including a serious illness I faced. If it weren’t for our entire work family pulling together during that difficult time, our business might not have survived. Instead, I recovered, and together we built a company that epitomizes the American Dream with three USA-based factories totaling 140,000 square feet and nearly 100 work family team members.
Our humble beginnings remind me of how fragile small businesses can be. The tax code plays a significant role in determining whether a company survives or shuts its doors. That’s why the 2017 Tax Cuts and Jobs Act was a game changer for America’s family businesses.
One of the most impactful provisions was the 20 percent small business deduction, which gave pass-through entities like ours the ability to compete on a level playing field with larger corporations. Additionally, the expansion of immediate expensing laws allowed us to write off the full cost of purchasing new equipment. Since 2017, we’ve invested heavily in advanced manufacturing equipment, which has significantly improved our productivity and efficiency. If expensing laws revert, companies like ours will be forced to delay investments that drive innovation.
But it’s not just businesses that benefit from the Trump tax cuts – it’s our employees and their families. Lowering income tax rates across the board means that every worker keeps more of their hard-earned money. The expansion of the child tax credit and the doubling of the standard deduction provided additional relief for working families, allowing them to save more and invest in their futures. If these tax cuts expire, our employees will face a direct pay cut through higher taxes, making it harder for them to afford necessities and plan for their financial security.
Another critical reason Congress must act now is to prevent the devastating impact of the estate tax, or as many family business owners call it, the “death tax.” Personally, I’d like to reframe it as the “Survivor’s Tax” since the people forced to pay it are the spouses and their children. If I were to pass away unexpectedly, the federal government could demand 40 percent of the business our family spent our lifetimes building. Unlike large corporations with massive cash reserves, small businesses like ours don’t have that kind of liquid cash available. The death tax could easily cripple our ability to keep the business in the family, forcing us to sell off assets or even shut down.
This year, I will once again travel to Washington, D.C., to meet with lawmakers alongside the National Association of Electrical Distributors. I will share our story with both sides of the aisle in hopes of finding common ground. There should be nothing partisan about renewing the Tax Cuts and Jobs Act improvements. The future of family businesses like ours and the livelihoods of millions of American workers depend on it.