The National Small Business Association (NSBA) has reached out to Congress, emphasizing the importance of small-business policies in the latest tax bill discussions. NSBA President and CEO Todd McCracken sent a letter to Congress and the House Ways and Means Committee regarding their examination of the new tax bill drafts.
"NSBA strongly supports the House Ways and Means Committee’s recently released reconciliation title, which includes language to ensure that critical tax provisions originally passed through the 2017 Tax Cuts and Jobs Act (TCJA) remain permanently available to Small Businesses," McCracken said. He added that if passed, this legislation would allow most small businesses to benefit from lower individual tax rates and increase the Qualified Business Income (QBI) deductible under Section 199A up to 23 percent.
McCracken noted these are top priorities for the small-business community, as determined by NSBA membership during their biennial Small Business Congress in February 2025. "Together, these measures would ensure small businesses do not bear a disproportionate share of the tax burden compared to their larger counterparts, providing long-term certainty for Main Street entrepreneurs," he continued.
The letter was addressed to Chairman Jason Smith and Ranking Member Richard E. Neal of the House Ways and Means Committee. It highlighted that small businesses make up 99.9% of all firms in the U.S., employing nearly half of all private sector workers and contributing over 43 percent of U.S. GDP.
Despite their significance, small businesses face vulnerabilities that can be exacerbated by changes in taxes or regulations. The TCJA had reduced taxes for small businesses by lowering income tax rates for individual filers and allowing a deduction of up to 20 percent on QBI earned through pass-through entities under Section 199A.
However, these provisions were not made permanent in the TCJA, requiring ongoing congressional action to prevent increased taxes on small businesses. The recent draft from the Ways and Means reconciliation title seeks to address this by making these provisions permanent and increasing the value of the QBI deduction.
McCracken urged support for this draft as well as other legislative efforts aimed at reducing financial barriers for small businesses.
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