Retailers are more than just stores where we shop. They’re the lifeblood of our local communities and the beating heart of our economy. Retailers employ over 1 million Missourians, providing the goods and services our families and businesses need, and contribute more than $36 billion to our state’s economy. But right now, many of these businesses are struggling.
We’ve all felt the pinch from rising prices, higher interest rates, and the economic fallout from the COVID-19 pandemic. For retailers, that means tighter budgets, less wiggle room, and a lot of hard work just to keep their doors open.
Increasing taxes on businesses means fewer jobs, lower wages, and less investment in the communities where we live and work. What a lot of people don’t know is that nearly all C corporations — over 99% — are smaller enterprises, many with fewer than 20 employees. Raising taxes on these companies could have forced some to cut back or even close, just when our neighborhoods need them most.
Since the Tax Cuts and Jobs Act helped lower the corporate tax rate to 21% in 2017, we’ve seen real, positive change, including more investment, better wages, and a stronger economy. Real median incomes went up by $5,000 in just two years after the cut — more than in the eight years before that combined. These aren’t just statistics — they’re real families getting better paychecks and more opportunities.
But the U.S. corporate tax rate is still higher than most other countries. With federal and state taxes combined, it’s close to 26%, above the global average of 23.5%. Raising the corporate tax rate would have threatened retailers nationwide, pushing jobs and investments overseas, and hurting our competitiveness on the world stage.
For Missouri retailers and the workers they employ, the stakes couldn’t have been higher. A tax hike would have meant layoffs, less investment, and a slower recovery from the economic challenges we’re still facing.
What’s more, tax hikes don’t just affect businesses. Studies show that up to 70% of the cost of higher corporate taxes falls on working families. It’s only logical that when businesses pay more in taxes, consumer prices often go up — hitting hardworking families already struggling with higher costs for groceries, gas, rent, and everyday essentials.
No one wants to see families tightening their belts even more or local businesses cutting hours or jobs. These stores aren’t just companies; they’re neighbors, friends, and family members who care about their communities. When their businesses suffer, we all feel it.
That’s why passing the One Big Beautiful Bill was important. It preserves the low corporate tax rate that incentivizes retailers and businesses nationwide to continue investing and hiring, while also maintaining critical tax reforms that have helped us succeed. Passing this bill helps Missouri’s small businesses and retailers stay open, create jobs, and give back to the communities that have supported them for years.
The Missouri Retailers Association thanks our lawmakers who voted “yea”– Senator Eric Schmitt and Senator Josh Hawley as well as Congressman Jason Smith for his leadership in the House of Representatives. Keeping the corporate tax rate low supports more employment and economic opportunities and helps Missouri retailers and communities grow stronger than ever.
President of the Missouri Retailers Association.
