The House of Representatives unveiled legislation to reform our tax code and provide tax relief to everyday Americans. 3rd District Congressman, Drew Ferguson, wrote this column about why this package is so critical to our local communities and how it will impact the Third District.

Helping Main Street Thrive

By Congressman Drew Ferguson

In Georgia alone, there are nearly 300,000 businesses employing workers each year. Of these, 94.2% employ fewer than 50 employees, yet they often face a steeper tax burden than big corporations with a larger workforce and more revenue.

Aaron McWhorter, a small business owner with two businesses in the Third District, employs a total of 180 folks and says that he has been able to expand his businesses over the years, but always in spite of our current tax code. By reforming our tax code, we will give Main Street business owners like Aaron more money to reinvest in their businesses, their employees and their communities.

Our tax plan would level the playing field for small businesses by cutting their taxes to the lowest rate since before World War II. This tax cut would guarantee that small businesses won’t face a higher tax burden than their corporate counterparts. To ensure this does not become a loophole for tax avoidance, we will also put strict guardrails in place to prevent abuse.

Our tax plan also addresses another obstacle to the growth for Third District small businesses: the threat of the death tax.

“Getting rid of the estate tax in this tax reform plan is huge,” said McWhorter. “You build a small business; the government taxes it. You grow it, and then they tax it again when you die. It is inherently unfair to small business owners.”

Our tax reform plan would provide immediate relief from the death tax by doubling the exemption threshold and then eliminating it over six years. It also gives businesses the opportunity to immediately write off new investments like equipment or renovations, which encourages entrepreneurs to grow their businesses.

These changes not only help existing small businesses, they lower the cost of entry for budding innovators and entrepreneurs across the nation. High taxes discourage newcomers from turning their ideas into brick and mortar businesses. By lowering the tax burden on new companies, we can bring more folks back to Main Street and allow everyone to succeed in a thriving economy.

Small businesses are critical economic drivers and job creators; when they succeed, so do our communities and neighbors. Right now, we have a tax code that punishes small business owners for succeeding rather than rewarding their hard work. Tax reform will change that. We will reinvigorate Main Street by giving current small business owners the opportunity to expand and new entrepreneurs the chance to enter the marketplace, unlocking the opportunity for everyone to access the American dream.

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