Helping Iowa businesses recover after disasters
The recent floods that devastated our communities have once again tested our resilience. As I've traveled through towns like Spencer, Rock Valley, Rock Rapids, Cherokee, Sioux Rapids, and Hawarden – witnessing firsthand the destruction of homes, businesses, and crops – I've been struck by the unwavering unity and determination among our neighbors. Despite the challenges posed by these floods – and the recurring nature of such disasters in Iowa – our communities continue to band together, demonstrating a remarkable ability to bounce back time and again.
Natural disasters are not a new phenomenon in Iowa, especially in rural areas where agriculture and main-street businesses form the backbone of our economy. Flash floods, tornadoes, strong winds, and high rivers have historically wreaked havoc on our agricultural yields and local businesses. However, amid this adversity, there are glimmers of hope and concrete steps being taken to aid in recovery and build greater resilience for the future.
On my 36 County Tour, I’ve seen how our small businesses form the foundation of our vibrant main streets in rural Iowa. These businesses — and the entrepreneurs who take major risks to start them — are critical to growing our economy and keeping our communities strong. When severe weather or other disasters strike, it’s absolutely vital that our small businesses have access to the financial support that they need to keep their doors open and keep employees on payroll.
That’s why I recently voted for the Rural Small Business Resilience Act. This legislation requires the Small Business Administration’s Office of Disaster Recovery and Resilience to help rural businesses in disaster-designated areas gain access to disaster assistance including low-interest loans and recovery grants, navigate uncertainty after disasters, and keep our economy growing. This legislation also ensures that our businesses can access the resources and capital that they need to get back on their feet and that business owners are aware of the support available to them in the aftermath of severe storms.
In addition to supporting this much-needed legislation, I helped introduce the Main Street Tax Certainty Act, which would permanently allow Iowa small businesses to deduct 20% of their qualified business income from their federal taxes. This gives our local entrepreneurs and small business owners the financial relief that they need to hire workers, make a profit, and give back to our communities. However, we must act quickly to reauthorize this tax cut for our small businesses as it is set to expire – along with many other provisions of the Tax Cuts and Jobs Act – in 2025.
I also recently led over 160 of my colleagues in introducing the Death Tax Repeal Act, which would repeal the death tax on family-owned-and-operated small businesses and farm. This tax is a prime example of government overreach at its worst, squeezing money out of every possible asset as they are passed from one generation to the next following a tragic death in the family. This is very significant for our business community and farm families because over 99% of farms and ranches in our country, as well as 95% of our nation’s small businesses, are owned and operated by individuals and families. Many of those businesses and farms rely on the next generation to breathe new life into them and continue the family tradition. But, sadly, the death tax – which is an egregious double tax on the transfer of property and other assets – robs American families of their future and their past and punishes those who have built successful family businesses.
Our district faces numerous challenges, from natural disasters to the Biden administration’s inflationary economic policies. As a member of the House Ways and Means Committee, I remain committed to advocating for policies that support our families, strengthen our farms, and help our small businesses grow and thrive.
This op-ed was originally published in the Northwest Iowa Review on July 23, 2024.