Nebraska Congressman meets with Omaha business owners to discuss tax provisions

About 20 Omaha business owners met with Second Congressional District Representative Don Bacon, along with representatives from the Greater Omaha Chamber and the U.S. Chamber of Commerce, to discuss how the 2017 tax cut provisions affected their companies and how a potential expiration of those cuts at the end of the year will impact them.

John Kirchner, vice president of government affairs for the U.S. Chamber of Commerce opened the discussion.

“There's no question that renewing the tax cut and Jobs Act is our top priority this year,” he said.

The Tax Cuts and Jobs Act of 2017 (TCJA), signed into law by President Donald Trump during his first term, overhauled the U.S. tax code. According to the Tax Foundation, the TCJA moved the U.S. to a “territorial” system of business taxation. It increased the standard deduction and reduced the corporate income tax rate, among other provisions.

“When we did this in 2017, a lot of folks said ‘This is a tough vote for you.’ It was not,” Bacon said. “Reducing corporate taxes from 35% to 21%, that was the world's average. We want to compete. We pay a much higher rate. Companies move overseas. We want them here.”

Cole Stichler owns multiple Primrose Schools child care establishments. He said he and his wife would like to expand their services, but they are concerned increased taxes could hamper their ability to do so.

“It’s a business where we need more of them,” Stichler said. “It’s kind of a forgotten industry. If we don’t have quality child care, it’s hard for people to go to work.”

Bacon acknowledged the increased need for more child care options in the state, and also the need for increased trade promotion, particularly in the agriculture sector.

Kirchner said the tax provisions are particularly impactful during a time of changing trade policies. He said the U.S. Chamber sent a letter to the White House asking to exempt small businesses from tariffs and asking to exempt products not domestically available.

“We are pushing hard against this tariff exercise, if you will,” he said.

The business owners acknowledged that opponents of the TCJA would argue it only helps the rich, but they counter that it helps businesses open hiring and investment opportunities that have a ripple effect in the economy.

“The tax law that we passed 2017, if we don't get it extended, it's going to affect small, medium and large businesses,” Bacon said after the roundtable. “We're not asking for, really, more tax cuts. We're just trying to keep the tax code level. We don't want to see a tax increase.”

Bacon also discussed potential Medicaid cuts and SNAP benefit cuts. He said he does not support harming health care for individuals using Medicaid, particularly children, but he does support work requirements for able-bodied adults without small children.

Kirchner said he and his team will be hosting more of these roundtables throughout the country.