VIDEO: NFIB’s Jeff Brabant Testifies Before U.S. Senate Finance Committee On Stopping Massive Tax Hike on Main Street

September 12, 2024

VIDEO: NFIB’s Jeff Brabant Testifies Before U.S. Senate Finance Committee On Stopping Massive Tax Hike on Main Street

WASHINGTON, D.C. (Sept. 12, 2024) – Jeff Brabant, NFIB Vice President of Federal Government Relations, testified before the U.S. Senate Committee on Finance at a hearing titled, “The 2025 Tax Policy Debate and Tax Avoidance Strategies.” Brabant spoke on the importance of making the 20% Small Business Deduction permanent and shared new data detailing the critical impact the deduction’s looming expiration will have on the small business economy if Congress fails to act.

Brabant testified: “If Congress fails to act, the 20% Small Business Deduction will expire at the end of 2025 and over 90% of small business owners will see a significant tax increase. These small business owners will not be absorbing this increase in a vacuum. They will be absorbing it at a time when their larger C-corporation competitors will not be seeing a tax increase, and at a time when inflation remains hugely problematic for small employers. “The decisions Congress makes reflect the values of a Congress. Over the next year, Congress will debate the merits of extending over $4 trillion worth of tax provisions. Members of Congress should ask themselves if they really believe it when they say, ‘Small Businesses Are the Backbone of America.’ If they truly believe that statement and value small businesses in their communities, then making the 20% small business deduction permanent be an easy decision.” NFIB conducted an analysis with Ernst & Young (EY) measuring the impact permanently extending the 20% Small Business Deduction would have on small businesses. The report concluded small businesses would flourish by making the deduction permanent, creating 1.2 million new jobs each year for the first ten years and 2.4 million annually every year thereafter. It would also result in a $750 billion GDP increase in the small business sector over the first ten years, and a $150 billion increase annually after that. Without an extension, those benefits to small businesses and the broader economy would be lost. NFIB also released a tax survey assessing tax-related challenges for small business owners, which showed that over half of owners believe eliminating the Small Business Deduction would have a negative impact on their business and would result in increased prices, fewer capital investments, and less hiring and job creation on Main Street. Read Brabant’s full testimony here. Watch his opening statement here.

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