Washington, D.C. (Feb. 10, 2020)—NFIB, the nation’s leading small business advocacy organization, issued the following statement on behalf of Acting President Brad Close in response to the Administration’s fiscal year 2021 budget request, which includes extending the small business and individual tax cuts that are scheduled to expire after 2025, released today:
“America’s small businesses have been doing exactly what they said they would do since the enactment of the Tax Cuts and Jobs Act. More than two years later, small business owners are creating jobs, reinvesting in their businesses, and increasing employees’ compensation. Optimism among small business owners remains near historic levels and the small business economy is booming. But small businesses need certainty to continue this remarkable streak. We are pleased the Administration recognizes the importance of the Small Business Deduction and individual rate cuts and the need for permanency in their proposed budget.”
NFIB surveyed small business owners after the passage of the Tax Cuts and Jobs Act and found that a majority of small business owners were optimistic about the law. Most of what owners forecasted about the impact of the law on their business operations came to fruition, with owners using tax savings to invest in their business:
- Twenty-seven percent of owners said they retained funds as higher earnings available to support growth.
- Twenty-six percent reported increasing employee compensation.
- Twenty-six percent reported increased business investment or expansion.
- Sixteen percent hired additional employees.
- Twenty percent paid down debt obligations.