Opinion | WA Rep. Dan Newhouse helped avert crisis for WA small businesses

The past few years have been tough for Washington small businesses. Inflation, labor shortages, and supply chain issues have all conspired to hit Main Street from every angle. But if you ask a small business owner how they’re feeling right now, they’re much more likely to say they’re optimistic again.

They have an excellent reason for this newfound hope. Rep. Dan Newhouse just freed them from an enormous federal tax hike. Not only that, he gave them permanent tax relief, which is key to boosting our communities.

Rep. Newhouse provided the pivotal vote for the signature legislation that President Trump signed over the summer. The law’s centerpiece was a permanent extension of the Small Business Deduction. Since 2017, this policy has transformed our economy for the better. Nine out of ten small businesses have used it to deduct 20% of their business income. With the savings, they’ve invested like never before in new jobs, bigger wages, and building for the future.

Unfortunately, this tax cut was scheduled to become a tax hike at the end of this year. The deduction was going to expire, forcing nearly every small business to fork over even more money to the IRS. Yet every dollar that small businesses send to Washington, D.C. is a dollar they can’t invest in Washington state. They need that money to grow and give back. And we all need small businesses to do what they do best.

Thankfully, Rep. Newhouse has averted this crisis. Main Street job creators no longer face a major tax hike.

When small businesses don’t know what’s going to happen, they hold back on hiring, giving raises, and donating to worthy causes in local communities. In other words, they play it cautious, because their survival may depend on it.

Now that their federal taxes are permanently lower, small businesses can do what they’ve always wanted to do. I’ve talked with a lot of Main Street entrepreneurs in the past few months, and without exception, they say the permanent 20% savings are opening new doors. Many are already creating new jobs. Many are modernizing their technology to stay competitive. Many are looking to expand or even open new stores.

That’s the power of a permanent tax cut. It lifts up all of us, not just Main Street. And with lower taxes, it’s a lot easier for would-be entrepreneurs to start their own small business for the first time.

By saving small businesses, Rep. Newhouse has delivered a victory for our entire state. Every community is anchored by Main Street stores. Every family relies on small businesses in one way or another. Until recently, they were looking at a tax hike that would have forced some painful choices, from laying off workers to shutting their doors. Now they’re making completely different choices and taking actions that are improving every corner of the state.

In the years ahead, we can expect small businesses to create tens of thousands of new jobs in Washington. We can expect them to give raises to even more of their current workers. And we can absolutely expect them to give back through even more local donations and sponsorships, as only small businesses do.

None of this would happen if Rep. Newhouse hadn’t come through for Main Street job creators and mom-and-pop stores. He spared them from a massive federal tax hike and put them on a stronger footing—permanently. All of Washington will be better off because of his tireless support for small business.

Patrick Connor is Washington state director for the National Federation of Independent Business.