NFIB President Brad Close recently appeared on The Lars Larson National Radio Show to discuss the importance of making the 20% Small Business Tax Deduction permanent. According to Close, this move would support job creation and economic growth.
Close emphasized the potential impact on small businesses if Congress does not act. "Small businesses are looking at a pretty massive tax hike at the end of the year if Congress doesn’t make the 20% [Small Business] Deduction permanent. And that’s a small business deduction for small businesses only…About 26 million business owners across the country right now would lose out on a very, very important deduction that’s helped them through the pandemic, through a tough economy. It would be a tough blow if Congress let that expire."
He further noted findings from Ernst & Young, indicating significant economic benefits if the deduction becomes permanent. "So, actually, if this tax cut is made permanent, EY, which is the new branding for Ernst & Young, did a survey and it showed if you make this permanent, you’re going to add $750 billion to the economy. Now, that’s obviously going to generate a fair amount of tax revenue into the federal government. It’s also going to add about 1 million, 1.2 million jobs a year as well, which again keeps that revenue growing as people’s incomes go up and new jobs are created."
Close also stressed that this financial relief allows small business owners to reinvest in their enterprises. "We’re talking about small business owners’ money; this isn’t the government’s money. And what this tax provision does, this 20% Small Business Deduction lets you and every other small business owner keep more of their own hard-earned money in the business and put it to good use."
The NFIB has been advocating for America's small and independent businesses for over eight decades across Washington D.C., and all state capitals. As a nonprofit and nonpartisan organization since its inception in 1943, NFIB continues its dedication to supporting these enterprises.
