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 Kansas if made permanent. The report also spotlights that the 266,000+ small businesses in Kansas 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 Kansas 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 Kansas, the C-Corp tax rate would remain at 27.5% while the small business rate would surge to 45.18%.

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, Kansas is projected to gain 12,000 new jobs annually over the next 10 years if the deduction remains in place, including an annual GDP increase of $568 million for the first decade and $1.17 billion per year beyond 2035.

View the report for Kansas here.

“Kansas small businesses are facing rising costs and workforce struggles,” said NFIB Kansas State Director Dan Murray. “If the 20% Small Business Deduction expires, the massive tax hike will further burden small business owners and limit their ability to grow. Congress must make the deduction permanent and level the playing field for Main Street.”

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 Kansas’ report visit: https://www.nfib.com/wp-content/uploads/2025/04/NFIB-20-Small-Business-Deduction-Impact-KS.pdf