Florida’s Small Businesses Can’t Afford a Corporate Tax Hike

Running a small business in Florida is a tough job. As CEO of U.S. Capital Source, I see it firsthand every day—entrepreneurs pouring their time, savings, and energy into keeping their companies afloat and their employees paid.  

These aren’t corporate giants with sprawling headquarters and global footprints. They’re local Florida manufacturers, retailers, and service providers. For many of them, the next big challenge won’t come from competitors—it’ll come from Washington.

Any attempts at raising the corporate income tax rate, thereby reversing a key part of the Tax Cuts and Jobs Act (TCJA) of 2017—ironically to help “pay for” much-needed extensions of some of the TCJA’s most successful tax cuts and reforms—would be harmful to Florida businesses. That may sound like a way to go after “big corporations,” but make no mistake: small businesses throughout Florida and across the country will pay the price, as will working families.

That’s because the corporate income tax doesn’t just hit the Fortune 500. More than 1.4 million (https://www.uschamber.com/taxes/small-business-would-be-hit-hard-corporate-tax-increase) small businesses nationwide are structured as C-corporations—including thousands right here in Florida. Most of them have fewer than 20 employees. These are often the family-run operations that form the backbone of our communities, and they’d be hit hard by a higher tax rate.

The current 21% corporate rate ushered in by the TCJA helped level the playing field for these businesses. It let them reinvest in their people, grow their operations, and weather the storms of the past few years—from the economic impact of the pandemic to record-high inflation rates to the rising cost of capital and ongoing supply chain challenges.

For many Florida businesses, that lower tax rate also meant the difference between expanding and shutting down. It gave them a shot at competing—not just nationally, but globally. Raising the corporate tax rate again now would undo much of that progress and threaten the small- and medium-sized businesses that keep local economies across the Sunshine State running.

A corporate income tax increase at this stage of the game would mean less investment, fewer jobs, and tighter margins in an economy that already feels like it’s squeezing small businesses from every direction. For a state like Florida, where small businesses employ over 40% of the workforce, that’s a serious threat.

We’ve seen what works. After the 2017 tax cuts, wages went up, business investment increased, and the economy grew. A study by the National Bureau of Economic Research found that the lower corporate rate led to a 20% increase in domestic capital investment in just two years.

Real median household income also grew faster in the two years after the tax cuts than it did over the entire previous decade. These weren’t just numbers on a chart—or bragging points for the Trump Administration—they were better paychecks, new hires, and more economic opportunities across Florida and nationwide.

Other countries have spent the last decade lowering their corporate tax rates to attract investment and jobs. That’s what made the lowering of the income tax rate by the TCJA such a historic victory for U.S. businesses and competitiveness. If we move in the other direction now, we’ll be losing whatever advantages we gained over the past eight years. 

Small businesses are often the ones most impacted when tax policy changes. According to the National Federation of Independent Business, 80% of small business owners say that keeping tax rates low is critical to their survival. If Washington raises rates now, it won’t be corporate CEOs who suffer—it’ll be the workers, families, and entrepreneurs who make Florida’s economy run 

Florida’s small businesses need stability, certainty, and a tax code that enables them to compete at home and globally. Our congressional delegation must help protect the lower corporate rate and stand with the small- and mid-sized businesses, start-ups, and entrepreneurs who are working every day to build a stronger Florida.

Greg Aguirre is the founder and CEO of U.S. Capital Source Corp. and has been recently featured in USA Today, Entrepreneur Magazine, and others. Connect with him about small business and entrepreneurship on X or LinkedIn @gregaguirre