Houston Daily

OPINION: The 20 percent tax deduction is a lifeline for Texas businesses
Opinion
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Tim Nesler | Provided

I’m a proud Texas business owner.

I love the communities we serve, the people we employ, and the life-changing work we do every day. But right now, I’m concerned about a debate in Congress that could have serious consequences for businesses like mine.

I’ve owned several LLC businesses over the years—the most recent being two BrightStar Care franchises—one in North Houston/The Woodlands area and another in Kingwood/Humble. For more than a dozen years, we’ve provided in-home care and medical staffing for seniors, children with disabilities, and individuals recovering from surgery.

From workforce shortages to supply chain issues during COVID, we’ve weathered a few economic storms. One thing that’s helped us stay afloat is Section 199A of the Tax Cuts and Jobs Act of 2017.

This isn’t a simple line in a tax code; it’s a tangible support system that allows pass-through businesses (most small and mid-sized businesses in Texas) to deduct 20 percent of their qualified business income. We’re talking about local restaurants, family farms, and everyday service providers like BrightStar Care.

In Texas, more than 48 percent of residents work for a pass-through business, and the collective tax benefit for our state is more than $12 billion. That means families are relying on businesses like these for jobs, services, and economic growth. The 199A deduction has allowed me to hire and keep top-notch caregivers, offer high wages, and expand into new markets.

If Congress lets this deduction expire, it’ll feel like a tax hike on business owners—a financial burden with a ripple effect. That kind of hit forces business owners to make painful choices: Do we raise prices or cut jobs? Neither answer is good for Texas families.

On a national level, the numbers tell an important story. After this tax cut went into effect, real wages rose and economic growth outpaced expectations. The National Federation of Independent Business found that permanently extending the 199A deduction would create about one million new jobs every year for the next 10 years and boost GDP by roughly $75 billion annually.

The U.S. House Ways and Means Committee has heard from business owners across the country who are urging Congress to act—and now, I’m adding my voice. American businesses are still bouncing back from the uncertainty of the past few years; now is not the time to hit us with a tax hike.

We need our representatives to understand that extending Section 199A isn’t just about helping entrepreneurs. It’s about supporting families. Let’s keep this deduction in place and give America’s businesses the certainty they need to grow and thrive.

Tim H. Nesler owns BrightStar Care of North Houston and The Woodlands, as well as BrightStar Care of Kingwood/Humble.