WASHINGTON, D.C. (Feb. 14, 2025) – The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, hosted its first Small Business Deduction Summit of 2025 this week on Capitol Hill. Small business owners traveled to the nation’s capital to share why Congress must make the 20% Small Business Deduction permanent to avoid a massive tax hike on 33 million small businesses nationwide.

During dozens of meetings with Members and staff, small business owners primarily discussed the urgency of passing the Main Street Tax Certainty Act to make the Small Business Deduction permanent before it expires at the end of this year.

“This week, Main Street job creators shared one urgent message with lawmakers: stop the massive tax hike on small businesses,” said NFIB President Brad Close. “The 20% Small Business Deduction levels the playing field between small businesses and larger corporations, allowing nine out of 10 small business owners to compete, grow their business, hire employees, raise wages, and give back to their communities. We thank each Member of Congress who met with NFIB members and listened to their stories about why Congress must make the 20% Small Business Deduction permanent.”

The 20% Small Business Deduction was created as a part of the 2017 tax law to level the playing field between small businesses and larger corporations. If Congress fails to act, taxes will increase on over 30 million small businesses at the end of 2025. The Main Street Tax Certainty Act would make the Small Business Deduction permanent and avoid a massive tax hike on a majority of America’s small businesses.

An economic impact analysis conducted by EY (Ernst & Young) measured 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.

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For 80 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is nonprofit, nonpartisan, and member-driven. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses, and remains so today. For more information, please visit nfib.com.