Small business owners recently gathered on Capitol Hill, organized by the National Federation of Independent Business (NFIB), to urge Congress to make the 20% Small Business Deduction permanent. The NFIB hosted its first Small Business Deduction Summit of 2025, where small business owners highlighted the potential impact of a tax increase if the deduction expires at the end of this year.
The primary focus was on urging lawmakers to pass the Main Street Tax Certainty Act. This legislation aims to solidify the deduction permanently, preventing what is described as a significant tax hike for approximately 33 million small businesses across the country.
NFIB President Brad Close emphasized, "This week, Main Street job creators shared one urgent message with lawmakers: stop the massive tax hike on small businesses." He explained that maintaining the deduction would allow small businesses to compete more effectively with larger corporations. According to Close, nine out of ten small business owners benefit from this deduction by being able to grow their operations and contribute positively to their communities.
Meetings included discussions with Speaker Mike Johnson and Ways & Means Chairman Jason Smith about making this deduction permanent. Originally part of a 2017 tax law designed to level competition between different-sized enterprises, its expiration could lead to increased taxes for over 30 million small businesses by year's end.
An economic impact analysis by Ernst & Young (EY) indicates that extending this deduction permanently could result in significant growth within the sector. It projects an addition of 1.2 million new jobs annually for a decade and a $750 billion GDP increase during that period.
For eight decades, NFIB has advocated for independent businesses throughout America. As a nonprofit and nonpartisan organization founded in 1943, it remains committed exclusively to supporting these enterprises both federally and across all states.
