Small Businesses Praise Reintroduction of the Main Street Tax Certainty Act
Small Businesses Praise Reintroduction of the Main Street Tax Certainty Act
January 23, 2025
Critical legislation would make the 20% Small Business Deduction permanent
WASHINGTON, D.C. (Jan. 23, 2025) – The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, strongly supports the Main Street Tax Certainty Act, legislation reintroduced today by Sen. Steve Daines (MT) and Rep. Lloyd Smucker (PA-11). This legislation would make the 20% Small Business Deduction permanent and stop a massive tax hike on Main Street scheduled to happen at the end of this year.
“If Congress fails to act, more than 30 million small businesses will face a massive tax hike at the end of this year,” said Brad Close, NFIB President. “The 20% Small Business Deduction allows nine out of 10 Main Street job creators to compete, grow their business, hire new employees, raise wages, and give back to their communities. NFIB is grateful for Sen. Daines and Rep. Smucker for their consistent leadership to stop the small business tax hike and urges Congress to pass the Main Street Tax Certainty Act to make the 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.
NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.
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