As a Tennessee business owner, here's how Congress can lighten Main Street's tax burden

• W. Brooks Shaw is the president of The Old Country Store and Casey Jones Village, a third-generation family-owned restaurant and tourism site in Jackson, Tennessee.

Since the age of 15, I’ve worked in the hustle and bustle of a restaurant kitchen and tourism attraction.

I’ve experienced the warmth of satisfied guests and the unending challenges and rewards of a third-generation family restaurant business. Nearly 20 years later, I am the president of the historic The Old Country Store and Casey Jones Village.

A historic cornerstone of Jackson, we are one of Tennessee’s top tourism attractions with more than 650,000 visitors annually.

For nearly six decades we’ve provided cherished gathering places while sustaining good jobs and supporting local suppliers.

COVID and rising costs did a number on small businesses

Running a business is never easy, and this has been especially true in recent times. The biggest hit came in 2020 when we lost my father, who ran the family business for many years, to COVID.

The emotional pain of losing him was followed by the economic shock of the pandemic and skyrocketing costs of food, labor, and equipment. And now, the clock is ticking on several expiring tax provisions that have helped businesses like mine stay afloat through these difficult times.

Fortunately, there is hope. Congress is currently considering the Tax Relief for American Families and Workers Act of 2024 (H.R. 7024), which restores interest deductibility and 100% bonus depreciation for equipment purchases, both critically important to restaurant growth.

At The Old Country Store, we are constantly innovating and finding ways to future-proof our business. We recently installed a drive-thru to meet off-premises demand. We’ve also kept pace and replaced aging equipment with the latest fryers, griddles and more. New upgrades and furnishings are not just purchases, they are investments in efficiency, productivity, and competitiveness.

The proposed tax bill would allow for us to immediately deduct these costs, making the investments without added financial strain. This would be a game-changer for us in an uncertain economy.

Current tax burden could stagnate our growth

Similarly, the restoration of business interest deductibility plays an important role when making operating investments. Under the current business interest deductibility standard, the financial burden can escalate, limiting our capacity to invest in our businesses.

Reverting to the previous deduction standard for 2022-2025 would allow us to manage debt more effectively, ensuring that cash remains available for essential expenses such as payroll, rent, and operating costs.

Without this adjustment, my increased tax burden could rise by as much as 30%, freezing our ability to expand and grow and ultimately restricting our contribution to the local economy. Because everything is connected in the restaurant business, loss of deductible expenses will also limit wage growth and employee training.

Also included in this bill is an expansion of the child tax credit (CTC). Previous expansions of the CTC have resulted in positive impacts on employment in the Tennessee restaurant industry and for many of its 335,000 employees. It helps the workforce have more opportunity to pick up shifts and earn more income, and it frees up more income that can be spent in the local economy, underscoring the relationship between tax policy and economic vitality.

This legislation acknowledges the unique challenges facing the restaurant industry, including high borrowing costs, food price inflation, and the repayment of pandemic-era loans. It offers a targeted approach to alleviate these pressures, enabling everyday American entrepreneurs to continue as engines of growth for our communities.

Tennessee Congressman led bill's House passage; now, on to the Senate

Supporting this bill also reflects an understanding of the broader economic ecosystem. The restaurant industry, as the second-largest private employer in the U.S., plays a critical role in the nation's economic health. For every dollar spent in a restaurant, $2.24 go into our state’s economy.

The passage of H.R. 7024 is not just about tax relief; it is about affirming the value of Main Street businesses in the American economy.

I heartily thank U.S. Rep. David Kustoff, R-Memphis, for shepherding this legislation to an overwhelming, bipartisan vote in the House earlier this year. I urge Sens. Marsha Blackburn and Bill Hagerty to recognize the importance of tax policy to our bottom line and set us on a path of support, growth, and prosperity for the restaurant industry and the communities we serve.

W. Brooks Shaw is the president of The Old Country Store and Casey Jones Village, a third-generation family-owned restaurant and tourism site in Jackson, Tennessee.