The National Federation of Independent Business (NFIB), West Virginia’s leading small business advocacy organization, released a new report outlining the benefits the 20% Small Business Tax Deduction will bring to West Virginia if it is made permanent. The report also highlights that the 115,000 small businesses in West Virginia could face significantly higher taxes if Congress does not make the 20% Small Business Deduction permanent. The report outlines the severe consequences for small businesses in West Virginia 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 highlights a stark contrast in tax rates between small businesses and their larger corporate competitors if the deduction is not made permanent. In West Virginia, the C-Corp tax rate would remain at 27.5%, while the small business rate would surge to 44.42%.

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, West Virginia is projected to gain 5,000 new jobs annually over the next 10 years if the deduction remains in place, including an annual GDP increase of $203 million for the first decade and $419 million per year beyond 2035.

View the report for West Virginia here.

“West Virginia’s small businesses are the backbone of the state’s economy,” said NFIB West Virginia State Director Gil White. “If Congress allows the 20% Small Business Deduction to expire, a massive tax hike on small businesses will take effect and stifle economic growth. This Tax Day, lawmakers should act quickly and protect West Virginia’s Main Street from a devastating tax increase.”

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 West Virginia’s report, visit: www.nfib.com/stopsmallbiztaxhike.