If Congress doesn’t act, the 20% Small Business Deduction will expire, raising my costs even higher.
Inflation is just one of many challenges small business owners are facing as a result of the pandemic. Many employers took on lines of credit to keep their employees on payroll. The 20% Small Business Deduction is scheduled to expire in 2025, imposing a massive tax hike on our local job creators when they can least afford it.
In a letter, NFIB small business owner member Eric Stevens shares why Congress must pass the Main Street Tax Certainty Act to make the 20% Small Business Deduction permanent. In the letter, Stevens writes:
No business was ready for the economic devastation of the pandemic. As gas prices increase and inflation reaches unprecedented heights, I struggle to ensure my employees can afford their mortgages/rent and bills and maintain my payments on pandemic-era loans.
These lines of credit were necessary to avoid bankruptcy and keep my employees on the payroll. I took only what was needed from the SBA and lost out on affordable funding options as the pandemic dragged on. I had no choice but to take high-interest short-term loans to keep our small business running.
If Congress doesn’t act, the 20% Small Business Deduction will expire, raising my costs even higher. Meanwhile, large corporations will continue to enjoy a lower corporate rate. The Main Street Tax Certainty Act introduced by Rep. Cuellar, would make this critical provision permanent. Please ask your representative to pass the Main Street Tax Certainty Act.
TAKE ACTION: Now is the time to urge Senators and Representatives to co-sponsor the Main Street Tax Certainty Act by explaining how a tax hike would impact small businesses. Consider sharing how much your taxes will go up if the 20% Small Business Deduction expires (Line 13 of your Form 1040).