Anthony V. Chirumbolo
Small and medium-sized businesses like Custom Utilicom are proud to be part of the engine
that keeps Ohio’s economy humming. We may operate locally, but we are a major supplier
for many larger, national companies and corporations, providing aerial & underground
construction, splicing services, surveying, and premise & MDU wiring to help support
America’s telecommunications sector.
Our success, and the success of a range of Ohio businesses, is directly linked to the health
of America’s broader economy. Right now, we’re sounding the alarm. If Congress doesn’t
work quickly to pass a strong reconciliation bill that extends key tax provisions from the Tax
Cuts and Jobs Act (TCJA), small and mid-sized businesses like ours will feel the hit first—
and perhaps hardest.
Passage of the TCJA wasn’t just a win for Washington, the Trump Administration, or so-
called “big business.” It was one of the most impactful pieces of tax reform policy passed in
recent memory. The tax provision created and implemented by TCJA have allowed
companies like ours to invest, create jobs and grow local economies
The 2017 tax law has given businesses like ours the certainty we need to expand our
operations and play an even bigger role in strengthening America’s supply chains. Since its
passage, we’ve been able to create good-paying jobs right here in Canton, Ohio and
throughout the state—jobs with a future.
However, much of the progress businesses like ours have made over the past eight years
could be wiped away if lawmakers fail to extend the expiring—or already expired—tax cuts
included in the TCJA. That’s why we need Ohio’s congressional delegation, including
Senators Bernie Moreno and Jon Hustead, to support and help pass the reconciliation bill
that extends these tax cuts as swiftly as possible.
If Congress fails to extend key portions of the TCJA, then Ohio’s utility contractors will lose
the ability to immediately expense R&D investments. Full expensing—or bonus
depreciation—will vanish and the deductibility of depreciation and amortization costs could
disappear as well. These are important tools that let businesses like ours re-invest in new
equipment, innovation, and, most importantly, our workforce.
Protecting small and medium sized businesses is vital, and raising the permanent corporate
tax rate—which the TCJA lowered from a bloated 35% to a much more competitive 21%—
would be a tax increase on our firms here in Ohio. That would be a grave mistake that could
jeopardize our continued efforts to grow this business. The increased tax would hinder our
ability to continue to pay competitive salaries, continue our expansion plans as well as
impact our ability to provide training and mentoring to our new staff.
Despite the common assumption that C-corporations are exclusively giant, multinational
businesses, most C-corps—[including Custom Utilicom]—are small or mid-sized
businesses. In fact, the TCJA incentivized many of these businesses to restructure as C-
corps specifically because of the lowered corporate tax rate.
The lower, 21% corporate tax rate has helped U.S. businesses of all sizes compete more
effectively and reinvest their earnings back into themselves and their workers. Rolling that
back now by once again increasing the corporate tax rate would pull the rug out from under
businesses in Ohio and across the country, many of which are already struggling with the
impact of inflation, high interest rates, and ongoing supply chain challenges.
It should be noted that the tax relief issued in 2017 has enabled Custom to invest over $4
million in equipment and infrastructure since 2018 as well as add over 50 new employees.
The employees were needed due to our growth, which was specifically linked to our ability
to add equipment and infrastructure.
Now is not the time to be raising taxes on America’s job creators. We’re still navigating a
tough economy. High inflation has hit businesses of all sizes, but it’s the small and mid-sized
ones that feel the squeeze most. We need Congress to get serious about protecting
America’s small and mid-sized businesses. This isn’t a partisan issue—it’s an economic
one.
Washington can’t tax its way out of our economic challenges, but we can grow our way out—
if lawmakers give American businesses the tools and certainty they need. Senators Moreno
and Husted must help pass a reconciliation bill that extends the tax policies that are working
and enable Ohio businesses like ours keep investing, innovating, hiring, and strengthening
local economies throughout the Buckeye State and nationwide.
Anthony V. Chirumbolo is President & CEO of Custom Utilicom, a full-service
telecommunication contracting company based in Northeast Ohio.
