NFIB member Tina Miller, who owns Walkabout Outfitter in Lexington, expressed concern over the potential expiration of the 20% Small Business Deduction. Writing in the Richmond Times-Dispatch, she warned that small businesses might face a significant tax increase if this deduction is not made permanent by the next president and Congress.
Miller emphasized the importance of this deduction, stating: “No matter who wins, next year will see the expiration of the biggest small business tax cut in American history — a tax cut that has enabled my small business to grow, thrive and survive the ravages of the pandemic and the past few years. If the next president and Congress don’t save this tax cut as soon as possible, we’ll face a massive tax hike that could even force us to close.”
She highlighted how crucial this deduction has been since its implementation under the 2017 tax law. The reform allows most small businesses to deduct 20% of their business income on annual tax returns. This measure aids small businesses in competing with larger corporations which have a permanent corporate tax rate of 21%.
Miller reflected on her experiences since starting her company with her husband in 2005. She noted that prior to 2017, they often paid more in taxes than they took home personally. The deduction helped them reduce reliance on loans for covering taxes and allowed for wage increases and hiring additional staff.
The necessity of this deduction became even more apparent during economic challenges such as inflation and government shutdowns due to COVID-19. Miller remarked that it was essential for maintaining competitive wages against rising prices.
Miller criticized Congress for not having already secured permanence for this deduction despite bipartisan support. She called upon politicians to fulfill their promises to support small businesses once they assume office: "As a minority woman small business owner, I’m asking them to prove it as soon as they take office in January."