Three major US trade associations representing hotels, restaurants and franchise businesses have called on Congress to prevent looming tax increases. The advocate groups want Congress to make certain key provisions of the Tax Cuts and Jobs Act (TCJA) permanent.
The leaders of the American Hotel & Lodging Association, National Restaurant Association and International Franchise Association sent a joint letter to House Ways & Means chairman Jason Smith and Senate Finance chairman Mike Crapo, the leaders of the American Hotel & Lodging Association, National Restaurant Association and International Franchise Association warned that letting TCJA measures expire would hurt small and family-owned businesses. These businesses, leaders argued, are already under pressure from inflation, high interest rates and labour shortages.
“Now more than ever, it’s imperative that Congress act to make permanent the TCJA to bolster the hospitality and tourism sectors,” the letter states. The industry leaders singled out provisions such as the small business deduction (Section 199A), expanded business interest expense deductions and “full expensing rules” as essential tools for hiring and growth.
They argued that many of the businesses they represent have only recently recovered from pandemic-related disruptions and are now contending with rising costs and slowing demand.
According to the letter, the uncertainty around tariffs and global supply chains is further squeezing margins, with impacts already visible in prices for food, beverage, equipment and operating supplies.
The three associations collectively represent hundreds of thousands of business owners and millions of workers across 300 sectors. They urged lawmakers to “act expeditiously” to provide tax certainty and stability to support continued investment and job creation.
