The National Federation of Independent Business (NFIB) has issued a statement regarding the impending expiration of the 20% Small Business Deduction. Jeff Brabant, NFIB Vice President of Federal Government Relations, highlighted the potential impact on small business owners if Congress does not act within the next 500 days.

“In 500 days, the 20% Small Business Deduction will expire, and taxes will increase on over 90% of small business owners if Congress fails to act,” Brabant stated. He noted that despite seeming distant, this looming tax hike is already affecting small business morale and planning.

The NFIB recently released its quadrennial “Problems and Priorities” survey, which ranks the top concerns of small business owners. The survey identified "Uncertainty over economic conditions" as the third biggest issue out of 75, followed by "Federal taxes on business income" at number four and "Uncertainty over government actions" at number eight.

“This survey demonstrates that business owners are operating in uncertain times and are worried that they are staring down a massive tax hike,” Brabant said. He emphasized that making federal taxes on business income an even more significant problem could be avoided if Congress passes the Main Street Tax Certainty Act (H.R. 4721, S. 1706), which would make the deduction permanent.

The 20% Small Business Deduction was established under the 2017 tax law to provide parity between small businesses and larger corporations. It has been instrumental in helping small businesses navigate recent economic challenges but is set to expire at the end of 2025. The Main Street Tax Certainty Act aims to prevent a substantial tax increase for many American small businesses by making this deduction permanent.

In addition to releasing statements, NFIB has launched new video, radio, and digital ads urging Congress members to support making the deduction permanent through passing relevant legislation.

Further information can be found at www.SmallBusinessDeduction.com