The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, released a new report outlining the benefits the 20% Small Business Tax Deduction will bring to Wisconsin if made permanent. The report also spotlights that the 481,000+ small businesses in Wisconsin could face significantly higher taxes if Congress does not make the 20% Small Business Tax Deduction permanent this year. The report outlines the severe consequences for small businesses in Wisconsin and the broader U.S. economy that would result from the provision’s expiration, highlighting potential economic slowdown and increased financial strain on local businesses.

The report also highlights a stark contrast in tax rates between small businesses and their larger corporate competitors if the deduction is not made permanent. In Wisconsin, the C-Corp tax rate would remain at 28.9% while the small business rate would surge to 47.25%.

However, making the deduction permanent would lead to significant economic benefits, leaving the small business tax rate on a level playing field with its competitors. Additionally, Wisconsin is projected to gain 25,000 new jobs annually over the next 10 years if the deduction remains in place, including an annual GDP increase of $1.27 billion for the first decade and $2.61 billion per year beyond 2035.

View the report for Wisconsin here.

“Wisconsin small businesses face a massive tax hike if Congress allows the 20% Small Business Tax Deduction to expire,” said NFIB Wisconsin State Director Bill G. Smith. “Small businesses are the backbone of our communities, and the deduction helps them grow and further invest in our local economies. Congress must make the Small Business Deduction permanent and level the playing field for the small business community.”

The 20% Small Business Tax Deduction, a key provision of the Tax Cuts and Jobs Act of 2017, has empowered millions of small business owners to expand, hire employees, and increase wages. If Congress does not act to make it permanent this year, nine out of 10 small businesses will face a significantly higher tax burden, threatening jobs and economic stability nationwide.

For more information about NFIB’s advocacy efforts and to access Wisconsin’s report visit: https://www.nfib.com/wp-content/uploads/2025/04/NFIB-20-Small-Business-Deduction-Impact-WI.pdf