The National Federation of Independent Business (NFIB) has urged Congress to utilize the budget reconciliation process to ensure the permanence of the 20% Small Business Deduction. The organization emphasized the need for immediate action following the passage of the budget resolution in the U.S. House of Representatives.
Adam Temple, NFIB Senior Vice President for Advocacy, stated, "Congress has the tools it needs; now it’s time for them to act and make the 20% Small Business Deduction permanent for over 30 million small business owners." He highlighted that without action, small businesses could face a significant tax increase within a year, potentially affecting their ability to hire, grow, pay employees, and maintain operations.
The deduction was utilized by nearly 26 million small businesses in 2021. NFIB reports that making it permanent could boost the economy by $750 billion over a decade and create 1.2 million jobs annually. Over 91% of NFIB members support this permanency.
For eight decades, NFIB has been advocating for small and independent business owners across America. As a nonprofit and nonpartisan entity since its founding in 1943, it remains committed to supporting these businesses nationwide.
