NFIB President Brad Close shares key small business legislation in op-ed
In an op-ed published by FOX Business, NFIB President Brad Close explained the importance of supporting small businesses this holiday season. Beyond shopping locally, Close urged supporters of small business to express urgency for Congress to level the playing field between small and big business.
“Just like families across America, small businesses are facing tough economic headwinds, especially from the soaring costs that come with inflation,” explained Close. “They’re also dealing with continued supply chain snarls, which drive up the cost of goods, too. And the non-stop deluge of red tape from Washington, D.C., makes running a small business more expensive than ever.”
Small businesses need support from their community to get through these challenges that impact Main Street more than big corporations because they have more resources at their disposal. “That’s the biggest reason why Small Business Saturday matters so much,” said Close. “Small businesses have accounted for two out of every three jobs over the past 25 years, and they want to keep providing jobs and opportunity. They also want to keep giving back to their communities, as the main sponsors of everything from local sports teams to school events.”
Congress can act to give small businesses relief and fairness compared to big corporations. Close notes there are three common-sense principles that Congress should pass immediately to provide economic certainty for Main Street.
Stop an upcoming massive tax hike on small businesses
“In 2017, lawmakers gave permanent tax cuts to Wall Street, but the relief they gave Main Street was temporary, and it’s set to expire at the end of 2025. Small businesses are already holding back job creation and wage hikes in the expectation that they’re about to pay a lot more of their hard-earned money to the IRS. They need Congress to pass the Main Street Tax Certainty Act immediately. If they fail to act, Congress will be responsible for a massive tax hike on small businesses, one that will ripple through local economies.”
Close mentions in the op-ed the need to make the 20% Small Business Deduction (Section 199A) permanent. It allows small businesses organized as pass-throughs (S corporations, LLCs, sole proprietorships, or partnerships) the ability to deduct up to 20% of qualified business income and is scheduled to expire at the end of 2025. The Main Street Tax Certainty Act, which would make the 20% Small Business Deduction permanent, was introduced in the U.S. Senate by Senator Steve Daines (R-MT) and in the U.S. House by Representatives Lloyd Smucker (R-PA) and Henry Cuellar (D-TX).
During a new campaign that launched in August, NFIB ran a multi-state advocacy campaign using video, radio, and digital ads to encourage members of Congress to pass the Main Street Tax Certainty Act.
Give small businesses relief from soaring credit card swipe fees
“When you shop at a small business, it must pay a 3% processing fee every time you swipe your credit card,” explained Close. “That’s because a few large credit card companies control the market and offer no real competition or chance of negotiating a better rate. If Congress passed the Credit Card Competition Act, Main Street would finally get more choices when it comes to card payment processing, leading to lower fees and more money to keep prices low and spend on wages and employees.”
Free small businesses from a burdensome mandate that goes into effect January soon
“Soon, every small business that earns more than $600 via platforms like PayPal and Venmo will start receiving tax forms from the IRS for additional tax liabilities,” said Close. “There is concern that the IRS will not be able to differentiate between money received as payment for work and money that was received to split the costs of goods or services, creating confusion.
For example, if you buy concert tickets and your friend sends you money electronically to pay for theirs, the IRS may treat this as income to you and tax it. Multiply this by tens of millions of transactions and you can see the magnitude of the problem facing small businesses. While the IRS recently delayed implementing this mandate, Congress should act to remove it immediately.
After shopping locally this holiday season, go a step further to support small businesses in your community and nationwide. TAKE ACTION: Add your name to NFIB’s petition to prevent a massive tax increase, and urge Congress to make permanent Main Street tax cuts a priority.
