NFIB President Brad Close discusses the importance of the 20% Small Business Deduction and urges Congress to act before it expires in 2025.
Tax Season 2024 is in full swing, and NFIB is urging Congress to prioritize the 20% Small Business Deduction and make it permanent before it expires in 2025. In an op-ed published in The Wall Street Journal, NFIB President Brad Close emphasizes the importance of this deduction and shares that small business owners face an unprecedented tax hike if it is not made permanent.
“The deduction, which about nine in 10 small businesses use, allows for a 20% deduction of qualified business income,” writes Close. “It’s the biggest tax cut for small businesses in history, helping level the playing field against large corporations. Its savings have helped small businesses create jobs, raise wages, and grow at a crucial time for the U.S. economy.”
“Small businesses don’t need a cycle of uncertainty every few years, worrying if Congress will or won’t protect their relief,” adds Close. “They need the confidence to continue investing, expanding, and improving their communities.”
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. The Main Street Tax Certainty Act, which would make the 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).
Close also released a statement on Tax Day echoing this message at a time when taxes and potential tax increases are at the forefront.
“On this Tax Day, small business owners want to see Congress take action and make the 20% Small Business Deduction permanent,” said Close. “Unlike their larger competitors, small business owners are at risk of a significant tax hike if the Small Business Deduction expires in 2025.”
NFIB released a “Top 10 Policy Priorities for 2024,” which included making the Small Business Deduction permanent as its top priority. Learn more about how this deduction is used to benefit not only small businesses, but employees and the entire community.
Take Action: sign NFIB’s petition to urge Congress to make the Small Business Deduction permanent and learn more at SmallBusinessDeduction.com.
