The monumental tax cut bill that gave needed relief to small businesses took effect two years ago. This was a signature victory not just for NFIB and its members, but for all Americans because this deduction has supercharged the economy.
Business is booming.
Unemployment is low at 3.5% with big gains in the private sector workforce. Businesses are hiring and expanding because they’re optimistic about the future. That’s exactly what you would expect to happen when government policies reward entrepreneurs for investing in their business.
NFIB’s Small Business Optimism Index confirms this, with a big jump to 104.7 in November. The survey showed small business earnings are up (a 10-point improvement), and more owners say it’s a good time to expand (up 6 points) because they expect business conditions to get even better (up 3 points). Thirty percent of small business owners said they plan to raise wages — more than at any time since 1989.
“The Small Business Deduction has delivered and continues to deliver on its promises,” said Brad Close, NFIB acting president. “When small business does well, so does America.”
Nimble and effective, small businesses are the driving force for innovation and job creation, responsible for half of the non-farm private GDP and 63 percent of jobs created annually. America can’t afford to let the Small Business Deduction expire — but it will unless Congress votes to make it permanent before Dec. 31, 2025.
Lawmakers in Washington often implement important policies with an expiration date as a compromise or as an experiment to see how well the policy will perform. There’s no longer any doubt that the Small Business Deduction is critical to the nation’s economic success.
That’s why it’s essential that NFIB members contact their representatives in Congress and urge them to make the Small Business Deduction a permanent feature of the tax code by passing the Main Street Tax Certainty Act (known as H.R. 216 in the House and S. 1149 in the Senate).
Please write and call your lawmakers today to urge them to cosponsor this critical legislation.
