By Former Oklahoma Senator Jessica Garvin
Last year, Oklahoma was ranked the 17th-best state for small businesses, and it’s no surprise. Our state takes pride in its entrepreneurial spirit and pro-business environment.
Small businesses are the lifeblood of Oklahoma’s economy – making up more than 99 percent of all businesses in the state and employing more than 717,000 people. That’s 51 percent of our state’s workforce. This includes small healthcare firms, which provide vital services to and employ thousands of Oklahomans.
As the owner of a small home health and hospice agency, I have a strong connection to the small business community and feel a great sense of responsibility to fight for what’s fair. I see that same sense of responsibility and connection in our state’s current congressional delegation: Senators James Lankford and Markwayne Mullin, and Reps. Kevin Hern, Josh Brecheen, Frank Lucas, Tom Cole, and Stephanie Bice.
In 2017, all of Oklahoma’s elected federal representatives voted to pass the Tax Cuts and Jobs Act (TCJA) – sweeping tax reform that prioritized economic growth. Since then, we’ve seen more jobs, increased wages, significantly higher GDP, and, most importantly, small businesses paying less in taxes, enabling them to reinvest in themselves.
This year, the TCJA will expire without congressional reauthorization, and the current Republican-controlled Congress is working to extend them in a fiscally responsible manner. As such, some of the provisions that have led to this economic boom in our state may be up on the chopping block to raise revenue, like the state and local tax deduction for small businesses. Without the small business deduction, many companies would face higher federal taxes, reducing the capital available for reinvestment, expansion, and job creation. This tax hike could fundamentally stifle our economic success.
It’s very early, and I know lawmakers are just starting to negotiate the new tax bill. But I know I that speak for Oklahoma’s small businesses, especially doctors and small healthcare firms, in saying that our taxes shouldn’t go up to pay for lower taxes for millionaires and billionaires in New York City.
State and local taxes that small businesses pay are an obvious business expense that they should continue to be allowed to deduct from their federal taxes. Ending this practice is sure to cost jobs on main street.
I want to thank Oklahoma’s congressional delegation for always prioritizing our state’s small businesses, and I hope they keep these impacts in mind as negotiations get underway. The state and local small business tax deduction is working for Oklahoma, and we need to protect it.
Jessica Garvin is the co-founder and Vice President of Refuge Care Home Health & Hospice. She also served as a Oklahoma State Senator from 2020 to 2024.
