Congress has reintroduced legislation aimed at making the 20% Small Business Deduction permanent, preventing a significant tax increase on small businesses scheduled for the end of this year. This legislative effort is supported by the National Federation of Independent Business (NFIB), which has identified it as their primary advocacy priority.
NFIB President Brad Close expressed gratitude towards Senator Steve Daines and Representative Lloyd Smucker for their leadership in this matter. "NFIB is grateful for Sen. Daines and Rep. Smucker for their consistent leadership to stop the small business tax hike and urges Congress to pass the Main Street Tax Certainty Act to make the Small Business Deduction permanent," said Close.
The deduction, initially introduced as part of the 2017 tax law, was designed to balance competition between small businesses and larger corporations. Without congressional action, over 30 million small businesses could face increased taxes at the end of 2025.
An economic impact report by Ernst & Young indicates that making this deduction permanent could generate 1.2 million new jobs annually for the first decade and 2.4 million each year afterward. Additionally, it would potentially boost GDP in the small business sector by $750 billion over ten years and $150 billion annually thereafter.
For more details on this legislative effort, individuals are encouraged to visit NFIB's website. The organization is also calling on supporters to reach out to Congress with personalized messages highlighting how these issues affect their businesses.
