The National Federation of Independent Business (NFIB), a prominent small business advocacy group, has expressed its support for the U.S. House Committee on Ways and Means' budget reconciliation proposal. The NFIB sent a letter to committee leaders endorsing the bill before its markup.
The legislation aims to make the Small Business Deduction permanent, increase its value from 20% to 23%, and provide tax cuts through lower individual rates. Adam Temple, Senior Vice President for Advocacy at NFIB, stated, “Since its inception in 2018, the Small Business Deduction (Section 199a) has empowered 25.9 million small businesses to hire more employees, expand operations, and invest in their local communities.”
Temple emphasized that making this deduction permanent is NFIB’s top legislative priority. He said it is crucial for preventing a significant tax hike on small businesses while providing tax relief for millions of owners.
The proposal also includes doubling the Section 179 expensing threshold from $1.25 million to $2.5 million to encourage new capital investments by small businesses. Additionally, it seeks to make the estate tax exemption for small businesses permanent.
A new aspect of the legislation is a health care tax credit of up to $1,200 per employee for small business owners who wish to offer health benefits without the complexity of a group plan.
According to NFIB, over 91% of its members support making expiring provisions from the Tax Cuts and Jobs Act permanent. The organization believes this will prevent increased taxes on over 33 million small business owners and reduce effective tax rates for most.
For more than eight decades, NFIB has been dedicated to advocating for America's small and independent businesses across all states and Washington D.C.
