Washington, D.C. (March 28, 2019) – NFIB, the nation’s leading small business advocacy organization, issued the following statement on behalf of President and CEO Juanita D. Duggan on this week’s House Committee on Ways and Means hearing examining the Tax Cuts and Jobs Act.
“Thanks to the Tax Cuts and Jobs Act, particularly the Small Business Deduction, small businesses are doing exactly what they said they would do if given tax relief – raising wages, hiring more workers, buying new equipment, and investing in their businesses. The proof is in the numbers as optimism and job creation among small businesses remain at historic levels. Small business owners need certainty that comes through permanence of this law’s provisions however, in order to maintain this momentum and continue to power the national economy as a whole.”
Key Small Business Deduction Facts:
- The Small Business Deduction has resulted in a savings of $27 billion in 2018 according to the Joint Committee on Taxation. It is projected to save $414 billion over ten years.
- The White House Council of Economic Advisers called for “making permanent the TCJA provisions that are currently scheduled to expire,” which includes the Small Business Deduction, in their annual Economic Report of the President.
- In the small business half of the economy, 2018 produced 45-year record high levels of job openings, hiring plans, actual job creation, compensation increases (actual and planned), profit growth, and inventory investment.
- Since December 2017, when the Tax Cuts and Jobs Act was signed into law, and every month since, “taxes” is no longer cited as the Single Most Important Business Problem, according to NFIB’s monthly surveys of its members.
- Job creation among small businesses broke the 45-year record in February 2019 with a net addition of 0.52 workers per firm, according to NFIB’s monthly jobs report.