NFIB Vice President of Federal Government Relations Jeff Brabant joined The Steve Gruber Show in Michigan to discuss the 20% Small Business Deduction and the potential tax hike on small business owners if it’s not made permanent.

“The big concern with small business owners is most of your small business owners aren’t c-corporations. The c-corporation rate is permanent and 9 out of 10 small businesses aren’t c-corporations, they are what you call pass-throughs businesses…so if you’re paying individual income taxes, the rates are supposed to go significantly up next year,” Brabant explained.

According to a recent NFIB report, if Congress doesn’t make the 20% Small Business Deduction permanent, Michigan’s small business tax rate will surge to 43.85%.

Watch the interview here!

The 20% Small Business Deduction was created as a part of the 2017 tax law to level the playing field between small businesses and larger corporations. However, the tax reductions for large corporations under the 2017 law were made permanent. The Small Business Deduction has empowered small business owners to overcome the economic challenges of the last few years.