What should Donald Trump and Republicans in Congress do first?

As a small-business owner in Maryland, I think the answer is obvious. As soon as they take office this month, they need to save millions of small businesses like mine from a massive tax hike, so we can keep investing in our workers and communities. If they don’t, the economy is going to start heading south early in the new year.

The truth is that small businesses are staring at a fiscal cliff. At the end of next year, the main tax cut of the 2017 tax reform is set to expire, which means that my taxes will rise dramatically. As that day draws nearer, small-business owners like me are starting to hold back. Frankly, I’m terrified that I won’t be able to give raises, boost benefits and invest in new equipment. Trump and Congress can’t let that happen.

The tax policy in question is called the 20% Small Business Deduction. Basically, it lets me and over 30 million small businesses exclude 20% of our income when we file taxes. The whole point of this policy is to move Main Street toward a level playing field with Wall Street. Without it, small businesses would be at an even bigger disadvantage.

But while Wall Street has permanent relief, Main Street only got temporary help. This means that all the investments we’ve made since 2017 could be temporary, too. Before the Small Business Deduction, I had to borrow money every year to pay my taxes. Not anymore. And with those 20% savings, I’ve been able to help my workers in ways I always wanted but could never afford.

Since 2018, I’ve been able to offer all of my employees a 4% match on a 401k retirement plan. In 2024, I’ve given them a 7% profit share, too. In other words, I’m putting the equivalent of 11% of every employee’s income back into their retirement. And their incomes are higher because the tax cut has helped me give them bigger raises of 4, 5, or even 6% or more annually in recent years. Finally, I’ve been able to increase the company contribution to medical insurance premiums from 50% to 60%.

This is all the result of the stronger cash flow that the Small Business Deduction makes possible, and with a stronger balance sheet, banks have been more willing to finance growth. We’re now up to 107 employees and we’re investing in loads of new equipment, like generators and cables. When I buy equipment, manufacturers across the country benefit. That’s another reason why this tax cut matters.

Bottom line: Thanks to the Small Business Deduction, I have the confidence to keep hiring and investing. It’s been 32 years since I started my business, and in all that time, no other policy has been as helpful as this tax cut.

But the flip side is also true: Nothing would be more harmful than letting the Small Business Deduction disappear at the end of the year. It would also be harmful if Congress waited until late in the year to act. Small businesses have to plan years in advance. When we don’t know what’s going to happen, we don’t spend nearly as much money because we’re saving it to pay for a potential tax hike. That could make 2025 a wasted year for job creation and wage growth.

Surely that’s the last thing that Donald Trump and Republicans in Congress want. And that’s why the first thing they should do after taking office in January is make the Small Business Deduction permanent. My small business — and Main Streets across Maryland and the rest of America — are counting on it.

John E. Kelly Jr. is the owner of Kelly Generator & Equipment, Inc. in Owings, Maryland, and a member of the National Federation of Independent Business.