The National Federation of Independent Business (NFIB) has expressed strong support for the Main Street Tax Certainty Act, a piece of legislation reintroduced by Senator Steve Daines and Representative Lloyd Smucker. The act aims to make the 20% Small Business Deduction permanent, thereby preventing a significant tax increase for small businesses at the end of this year.

Brad Close, NFIB President, emphasized the potential impact on small businesses if Congress does not take action: “If Congress fails to act, more than 30 million small businesses will face a massive tax hike at the end of this year.” He added that the deduction allows many small business owners to expand their operations and contribute positively to their communities. Close also acknowledged the efforts of Sen. Daines and Rep. Smucker in advocating for this legislative change.

Originally introduced as part of the 2017 tax law, the 20% Small Business Deduction was designed to help level the playing field between smaller enterprises and larger corporations. Without intervention from Congress, taxes on over 30 million small businesses are set to rise at the end of 2025.

An analysis by Ernst & Young highlighted that making this deduction permanent could significantly benefit small businesses. The report projected that it would create 1.2 million new jobs annually over ten years and subsequently increase to 2.4 million new jobs each year thereafter. Additionally, it anticipated a $750 billion boost in GDP within the small business sector during the first decade and an annual increase of $150 billion following that period.

For eight decades, NFIB has championed America's small and independent business owners across Washington D.C., as well as all state capitals nationwide. As a nonprofit organization driven by its members since its founding in 1943, NFIB continues its exclusive focus on supporting these enterprises today.