Jeff Brabant, NFIB Vice President of Federal Government Relations, will testify before the U.S. Senate Committee on Finance at a hearing titled "The 2025 Tax Policy Debate and Tax Avoidance Strategies" on September 12, 2024, at 10:00 a.m. ET. Brabant's testimony will focus on advocating for the permanent establishment of the 20% Small Business Deduction to prevent significant tax increases for small businesses.

“The creation of the 20% small business deduction has been crucial to the survival of small business owners. Since its passage, the small business economy has endured a plethora of issues including a pandemic that closed many businesses for long periods, record inflation, and a historically tight labor market. This deduction empowered small business owners and allowed them to not only survive these difficult times but to thrive,” said Brabant.

“However, small business owners are now confronted with a new reality; if Congress fails to act, the 20% small business deduction will expire at the end of 2025 and over 90% of small business owners will see a significant tax increase. These small business owners will not be absorbing this increase in a vacuum. They will be absorbing it at a time when their larger C-corporation competitors will not be seeing a tax increase, and at a time when inflation remains hugely problematic for small employers.”

Brabant emphasized that Congressional decisions should reflect their stated values: “The decisions Congress makes reflect the values of Congress. Over the next year, Congress will debate the merits of extending over $4 trillion worth of tax provisions. Members of Congress should ask themselves if they really believe it when they say 'Small Businesses Are the Backbone of America.' If they truly believe that statement and value small businesses in their communities, then making the 20% small business deduction permanent should be an easy decision.”

The hearing can be streamed on the U.S. Senate Committee on Finance website.