Yesterday in The Hill, NFIB President Brad Close explains how if Congress erodes the Small Business Deduction, it would set a terrible precedent and open the door to further tax hikes on small businesses. He notes how the Small Business Deduction, known as section 199A of the federal tax code, is one of the most important small business tax reforms in decades, and that if cut or ended, it would hurt small businesses from hiring, expanding, and potentially even staying open:
Any tax hike would arrive when small businesses can least afford it. Nearly a quarter of small businesses say taxes already are the single biggest problem they face, and coming off the economic devastation of the pandemic and shutdowns, Main Street is struggling. Labor shortages are rampant. Historically high levels of small businesses are raising prices to cover supply chain disruptions and other challenges. With a tax hike, many would consider raising prices higher still. That’s no recipe for recovery. It’s an invitation to greater pain — for small businesses, their workers, and their customers alike. …Eroding the Small Business Deduction would set a terrible precedent, opening the door to further tax hikes on small business, meaning further strain on the engine of our economy.”
– Brad Close, NFIB President
Read the full opinion editorial published in The Hill.