Tennessee's big tax cut for small businesses gave citizens more money in their pockets

Tennessee has long been one of the best states in America to start a small business.

We have no individual income tax, the lowest debt-per-citizen in the nation, and enough common sense to keep bureaucratic red tape from choking our entrepreneurs.

I had the chance to serve on the Beacon Center of Tennessee’s Entrepreneurship & Innovation Council, with a goal of making Tennessee the innovation capital of America.

We released an economic roadmap earlier this year and the state legislature has already passed a half dozen of our recommendations into law, including the single-largest tax cut in state history.

More: How Tennessee Works Tax Act lifts barriers for businesses and individuals | Opinion

Money will flow to businesses rather than government

Now over 140,000 small business job creators from Memphis to the Tri-Cities are exempt from the gross receipts business tax, while businesses across the board will have an extra $150 million each year to invest in growth.

Even more money will flow to these businesses annually – rather than to the government – if the legislature fully repeals the business tax as we have proposed.

Allowing small businesses to keep more of their hard-earned money to build-up local economies and hire more people is not a partisan issue – it is about doing right by all Tennesseans.  We can and should do more for folks like my parents – entrepreneurs who dreamed of and started a little trucking business nearly 50 years ago with $200, an empty garage, and lots of elbow grease.

Tennessee’s next generation of business owners already have the bright ideas that will guide our state down the road of continued economic prosperity, if we only let them bring those ideas to life.

What they need is a one-stop shop for their business rather than three state agencies requiring them to file and keep track of separate paperwork.  Even better would be waiving the registration fees for an entrepreneur’s first business so that money can be poured back into where it is needed the most – the business.

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We must train the next generation of entrepreneurs of Tennessee

We cannot expect budding small business owners to grow on trees.  Like my parents, aspiring entrepreneurs need help understanding how to balance a good idea with running the nuts-and-bolts of a business.

Most high schools do not adequately teach financial literacy, currently leaving many owners to learn through trial-and-error.

Tennessee is home to numerous Colleges of Applied Technology (TCATs) available nearly free of charge – the perfect places for business-savvy entrepreneurs to hone future skills and avoid costly mistakes.

We should encourage in-person and remote business course offerings at all 27 TCAT locations so the next generation of job creators possesses the know-how to read financial statements, balance budgets, and develop business plans.

Only by providing its next generation of entrepreneurs with the tools to grow can Tennessee maintain its reputation as one of the best states to start a small business.

Jason Schmitt is the former CEO of Old Time Pottery and serves on the Tennessee State Workforce Development Board. Jason previously served in executive positions for Walmart, Amazon, Gap, and Mattel before joining Old Time Pottery.

This article originally appeared on Nashville Tennessean: Tennessee businesses and entrepreneurs benefited from the 2023 tax cut