The expiration of major portions of the Tax Cuts and Jobs Act creates “looming uncertainties” for many of the nation’s small business owners.
NFIB’s Director of Research and Policy Analysis Holly Wade made that clear when she recently testified before the United States House of Representatives Committee on Energy and Commerce. “The frustration level associated with tax-related costs and compliance is immense,” she said. “The new tax law will help ease some of these problems for most small businesses.”
The vast majority of small business owners—87 percent—think the new tax law will have a positive impact on the general economy, according to a recent NFIB report that captures small business owners’ initial reaction to the Tax Cuts and Jobs Act.
The survey was of a random sample of NFIB members with responses received between mid-February and mid-April.
But unless lawmakers act, tax cuts for the vast majority of small businesses expire after Dec. 31, 2025, complicating long-term planning for small business owners.
“Incorporated businesses have a clearer path as the corporate tax rates were permanently consolidated to 21 percent and the corporate alternative minimum tax was permanently repealed,” Wade testified. “Small business owners are now assessing how these changes will affect them personally and within their businesses. The new tax law is a significant step forward in easing one of the main concerns of small business owners: the impact of federal taxes on business income.”
Meanwhile, more than 300 NFIB members from across the country visited Capitol Hill on the same day as Wade’s testimony, urging lawmakers to permanently extend the small business provisions of the Tax Cuts and Jobs Act.
In town for NFIB’s 75th Anniversary and Fly-In, members shared stories of how tax reform provisions—such as Section 199A, which provides up to a 20 percent deduction for pass-through companies, and the increased estate tax thresholds—have helped their businesses.
Renae Breitbach, executive vice president of NFIB member business Amerimar Midwest Management Co., which manages rental properties in Indianapolis, was among those who met with their state’s congressional delegation. Breitbach met with U.S Sens. Joe Donnelly and Todd Young, and U.S. Reps. Trey Hollingsworth, Luke Messer, Larry Buschon, and Susan Brooks.
“We discussed tax reform—including the importance of making it permanent—and also discussed workforce development, the importance of addressing the deficit, and reforming the Affordable Care Act,” Breitbach said. “I so appreciated the opportunity provided by NFIB to learn more about the inner workings and procedures of what it takes to actually accomplish something in Washington.”
According to a recent NFIB member ballot, more than 90 percent of small business owners support permanently extending the expiring provisions of the tax act.
Ahead of the Hill visits, more than 100 NFIB members from 30 states attended an Advocacy Academy in Washington, D.C.
“I became more aware of how much time and effort our legislators devote to trying to helping us address our challenges, reach our goals, and achieve success,” Breitbach said.