What it means: A recent Small Business Rundown episode highlights NFIB’s 2024 Tax Survey with comments from NFIB members about how the tax hike caused by the end of the 20% Small Business Deduction would affect their business.

Our take: “For this survey, we wanted to get a better understanding of small business owners and their taxes; how they go about filing their taxes, what the pain points are in filing their taxes, and what challenges they face in that whole process,” said NFIB’s Research Center Executive Director Holly Wade.

Take Action: Join over 95,000 small business owners in signing NFIB’s petition to stop the massive tax hike by making the 20% Small Business Deduction permanent.

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Tax policy impacts the operations of small businesses across the nation. NFIB’s Research Center Executive Director Holly Wade joins the Small Business Rundown to discuss findings from NFIB’s 2024 Tax Survey.

Wade describes what small business owners are saying about their biggest tax challenges. A key takeaway shows 59% of small business owners reported that eliminating the the 20% Small Business Deduction would have a negative impact on their business. The deduction is set to expire at the end of 2025, which would create a massive tax hike for nine out of 10 small businesses.

At a recent event, NFIB members shared how this tax hike would affect their business moving forward.

• Rodney Weidman, Weidman Pools, Missouri – “The first thing we’d have to decide is are we going to raise prices on our customers or are we going to cut employees or employee benefits?”
• Laurie Sprouse, Ultimate Ventures, Texas – “It’s very demotivational to continue working so hard and think about giving up that much.”
• Jed Bowman, South Dakota – “You kind of freeze hiring and wages and then those dollars are going to come off of Main Street and out of our communities.”
• Claudia Smith, Aggieland Carpet One, Texas – “We’re probably going to have to lay off a couple employees [and] not offer the benefits that we’ve been able to offer so far.”
• Kathy De Merchant, Capital Area Staffing, Maine – “If this tax deduction goes away, in addition to the increase of the premiums, it’s going to be very difficult for us to continue providing this very important benefit to our staff.”

Listen to the full podcast episode episode “Tax Survey Results: Small Business Owners Voice Uncertainty & Concerns” for more on NFIB’s 2024 Tax Survey and the impact of the 20% Small Business Deduction.

Take Action: Join over 95,000 small business owners in signing NFIB’s petition to stop the massive tax hike by making the 20% Small Business Tax Deduction permanent.