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 Mississippi if made permanent.

The report also spotlights that the 283,000 small businesses in Mississippi 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 Mississippi 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 Mississippi, the C-Corp tax rate would remain at 26%, while the small business rate would surge to 44%.

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, Mississippi is projected to gain 9,000 new jobs annually over the next 10 years if the deduction remains in place, including an annual GDP increase of $362 million for the first decade and $747 million per year beyond 2035.

View the report for Mississippi here.

“This deduction has meant a lot to local businesses,” NFIB State Director Leah Long said. “Main Street businesses already are contending with higher costs, a labor shortage and uncertainty about what the future holds. If this deduction is allowed to expire at the end of the year, Main Street businesses would see a big increase in taxes that would make it even harder for them to compete with national chains, let alone grow, create jobs, and support their communities.”

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.