Millions of small business owners are taking advantage of the Small Business Deduction, which continues to provide a big boost to the national economy. That’s according to the NFIB’s latest member survey, which shows 83 percent of small business owners believe 2017’s Tax Cuts and Jobs Act is having a positive impact on the economy.
With GDP growth of 2.5 percent over the past six quarters, we’re enjoying the longest unbroken streak of economic expansion in history, and small business is leading the charge — the Index of Small Business Optimism surged to a 46-year record-high in August and has continued a historic run of strong levels ever since.
Two-thirds (66%) of NFIB members report the tax cut bill had a positive, or very positive, impact on their bottom line. That’s in large measure thanks to the Small Business Deduction which allows pass-through business owners to deduct 20 percent of their business’s income up to $315,000 for joint filers.
Despite the potential benefit, nearly a third (32%) of members remain unfamiliar with the Small Business Deduction, either leaving the details to their tax professional or unfortunately leaving possible savings on the table. So, NFIB will continue to spread the word so that all of our members can take full advantage of every potential tax break that means more money for hiring and training new staff, enhancing benefits, increasing compensation, or expanding the business.
The Small Business Deduction has been a big win for entrepreneurs, but we need to fight to keep it. The deduction will expire in 2025, unless Congress makes it permanent by passing the Main Street Tax Certainty Act (H.R. 216 in the House, S. 1149 in the Senate). Be sure to let your representative and senators know how important this legislation is to you and your business.