WASHINGTON, D.C. (Sept. 7, 2023) – Today, FOX Business published a new op-ed from NFIB President Brad Close on the importance of the 20% Small Business Deduction for Main Street businesses nationwide, and how Congress can support small businesses by passing the Main Street Tax Certainty Act.
“The Small Business Deduction has already given America’s mom-and-pop businesses billions of dollars in tax relief, allowing them to reinvest back in their businesses, employees and communities, and most importantly, create jobs. Without this crucial provision, the 2017 law would have unfairly tilted the playing field toward big businesses and large corporations. Yet, while the Tax Cuts and Jobs Act’s relief for corporations is permanent, this relief for Main Street is temporary. The Small Business Deduction is scheduled to expire in 2025. That could be considered an eternity in Washington D.C. time, but for small businesses, this massive tax hike is coming up fast.”
“I’ve talked with many small business owners in the past year alone, and they all tell me how important this tax provision is to their business. For many of these owners, the tax savings are the only way they can raise pay or benefits, create new jobs, and purchase much-needed equipment.”
“The Small Business Deduction simply allows small business owners to keep more of their own money in their business instead of sending it to Washington. It helps them compete with their larger, corporate competitors. Main Street already accounts for about half of the economy and creates two-thirds of net new jobs. Small businesses want to contribute even more to the economy, creating jobs and giving back when the country needs it most. For America’s sake, it’s time to make the Small Business Deduction permanent.”
The 20% Small Business Deduction (Section 199A) allows small businesses organized as pass-throughs (S corporations, LLCs, sole proprietorships, or partnerships) the ability to deduct up to 20% of qualified business income and is scheduled to expire in 2025. The Main Street Tax Certainty Act, which would make the 20% Small Business Deduction permanent, was introduced in the U.S. Senate by Senator Steve Daines (R-MT) and in the U.S. House by Representatives Lloyd Smucker (R-PA) and Henry Cuellar (D-TX).
During the August recess, NFIB ran a multi-state issue campaign using video, radio, and digital ads to encourage members of Congress to pass the Main Street Tax Certainty Act.