How the Trump tax cuts helped one small grocer compete

Small neighborhood grocers are a dying breed.

High taxes, heavy regulations, and the rise of national big box stores are driving them to the brink of extinction.

But one family-owned grocer in Pennsylvania has turned its struggle for survival into a great comeback story: Sprankle’s Neighborhood Market.

And a large part of its success is due to the 2017 tax cuts.

From humble beginnings to a community cornerstone

When Randy Sprankle took a job at a grocery store, he didn’t think it would lead to a career as a store owner.

But in 1998, he purchased a local independent grocery. A year later, he bought another one.

Before long, he owned five.

These stores weren’t just grocery stores — they became pillars of their communities.

Driven by the belief that their stores “don’t just feed people, they feed community culture and belief,” Sprankle’s Neighborhood Markets represent a success story — fueled by good tax policy that allowed them to invest heavily in their 160 employees.

From a payroll that is among the highest in the grocery industry to the health care they offer families and even the free uniforms they provide, the Sprankles treat their crew like family members.

Beyond their employees, the Sprankles work hard to help other small businesses thrive.

They buy from local farms and contribute to their annual Oktoberfest, allowing local vendors, craftsmen, and nonprofit organizations to reach thousands over a single weekend.

But it goes beyond business. The Sprankles’ average annual charitable giving has reached $100,000+, and they donated 100% of their winnings from the game show “Family Feud.”

Meanwhile, their donations have helped equip their local police with vital equipment.

The 2017 Tax Cuts and Jobs Act provided a much-needed lifeline and opportunity to compete with their larger competitors.

Even with a thriving business, their reputation didn’t guarantee the stores’ survival when a national chain came to town.

Up against national advertising, increased purchasing power, and massive inventories, the five Sprankle’s Neighborhood Markets dwindled to two.

However, when the TCJA became law, Sprankle’s utilized key portions to remain competitive.

New depreciation and expensing rules helped them to expand and remodel their two existing stores.

Changes to expensing rules for business property acquisition allowed Sprankle’s to purchase, open, and expand a new store in a previously underserved area — commonly referred to as a food desert.

And the savings achieved through the tax cuts alone allowed Sprankle’s to give its crew raises.

Sprankle’s Neighborhood Markets are thriving again. For example, their new store has tripled its crew and is generating five times the revenue it produced for the old owner.

The looming threat of massive tax hikes

But a new threat looms on the horizon. Key provisions of the Trump tax cuts expire at the end of this year.

If Congress fails to extend the TCJA, the Sprankles will be forced to evaluate their current business model. They may need to lay off employees and reduce their contributions to the local community. Their business operates on small profit margins. The tax cuts enabled them to compete with bigger, national chains.

But as Doug Sprankle says, it’s not just about the damage tax increases would do to his small business. An average Pennsylvania family of four will face a $2,394 tax hike that will affect their customers’ buying power and shopping habits.

All told, tax increases after four years of disastrous Biden administration policies could lead to the loss of over 33,000 jobs in Pennsylvania alone.

Allowing the TCJA to expire would have devastating effects on the U.S. economy.

That’s why Americans for Prosperity is activating its nationwide grassroots army to push Congress to extend the 2017 tax cuts.

We need your help. Your voice is vital to protecting thousands of small businesses and communities across America.