Small business owners explain how the expiration of the Small Business Deduction (Section 199A) would impact their businesses
WASHINGTON, D.C. (Oct. 27, 2022) – The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, released a new video featuring small business owners discussing how losing the Small Business Deduction would hurt small businesses across the nation.
The Small Business Deduction (Section 199A) allows many small businesses to deduct up to 20% of their qualified business income, which they can then reinvest in their employees and business operations. According to NFIB’s latest research, 56% of small business owners reported capital outlays in the last six months, 45% reported raising compensation, and 23% plan to create new jobs in the next three months. For many small businesses, such investments are possible because of the Small Business Deduction. Despite its positive impact, the Small Business Deduction is set to expire after 2025.
You can view the new video here:
“At the end of the day, it’s not so much the impact on the ownership as it is on all those folks who are a part of the business’ environment. Our staff are going to feel it the most,” said Loren King, a small business owner from Indiana.
“If that 20% were to become permanent, and we knew that we would get that all the time, then we would know how much money we would have to set aside and be able to reinvest…If that money’s not there to reinvest, then the company won’t do as well,” said Kellie Loudin, a small business owner from Ohio.
“If the small business deduction does not become permanent, it is going to have an impact on what we can do with our company,” said Eddie Wetherill, a small business owner from North Carolina.