Small Business Owners Speak Out on Looming Tax Hikes

September 18, 2023

Small business owners and NFIB fight to make the 20% Small Business Deduction permanent

Small Business Owners Speak Out on Looming Tax Hikes

Small business owners are continuing to fight against a scheduled massive tax increase by speaking out and sharing how they have used the 20% Small Business Deduction for their small businesses. NFIB released three new videos featuring small business owners from across the country sharing what the 20% Small Business Deduction means for their business. The latest edition in the series features Michelle Smith of Florida and Renea Jones of Tennessee explaining the importance of the deduction. “If the Small Business Deduction were eliminated, then all of the things that small business owners have based their business models on, including just their dreams and their plans, all of that has to scale back,” explained Michelle. The 20% Small Business Deduction (Section 199A) 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 in 2025. The Main Street Tax Certainty Act would make the deduction permanent, and in response, NFIB launched a campaign urging Congress to support this legislation. Since 2018, nine out of 10 of America’s small businesses have benefited from the critical deduction. Renea urged Congress to move forward with the Main Street Tax Certainty Act. “It is imperative that you make this deduction permanent for small businesses across the country in order for us to survive in these crucial economic times,” said Renea. Other small business owners agreed in a follow-up video released on the issue. “The impact of losing the 20% just means that much less for the growth and development of our company, for hiring staff, benefits, and everything else. We’ll just have to make different choices or raise fees,” said Scott George of Missouri. “The 20% deduction is critical for our business because, over the last year, we’ve invested $35,000 back into our business. That’s been able to bump up our inventory; it’s been able to add some infrastructure that was lacking; it’s been able to do some improvements into what we’re trying to do for the good of the community and our customers,” added Jeff Hastings of North Carolina. Montana Small Business Owner Gray Cornwell of Montana Valley Irrigation in Great Falls told his story on why the Small Business Deduction is so important to his business. “Small businesses are the heart of the United States economy…We’re your next-door neighbor trying to make a living. If the Small Business Deduction is eliminated, it’s going to be a struggle for our business…We need support.” Learn more about the 20% Small Business Deduction, the Main Street Tax Certainty Act, and the NFIB issue campaign at www.SmallBizDeduction.com. TAKE ACTION: Tell Congress to make small business tax savings permanent! Share how the 20% Small Business Deduction has helped your small business grow.

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Topics:

In Their Own Words

Taxes

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