Inflation and the ongoing labor shortage are just a handful of the many challenges small business owners are facing. The 20% Small Business Deduction is scheduled to expire in 2025, imposing a massive tax hike on our local job creators when they can least afford it.

In a letter, NFIB small business owner member Rodney Wideman shares why Congress must pass the Main Street Tax Certainty Act to make the 20% Small Business Deduction permanent. Wideman writes:

The 2017 tax reform bill unleashed greater opportunity for all Americans. But a key component, the 20% Small Business Deduction, is set to expire in 2025, imposing a massive tax hike on local job creators.

For some small business owners, this deduction has helped them keep the lights on. For this third-generation, family-owned small business, it’s helped us invest in new equipment, provide greater benefits for my employees, and create new jobs.

In fact, since tax reform took effect, we’ve been able to provide our employees with a 401K and health insurance. These benefits, along with our new equipment, help us compete in the market and meet our customers’ needs.

It’s difficult to overstate how challenging this economy has been for Main Street and working families alike. Inflation, supply chain disruptions, and the labor shortage have all taken their toll. The last thing small businesses need is a massive tax hike.

For most readers, 2025 might seem far off in the future. But for small business owners, it’s just around the corner. With all the economic uncertainty we face on a day-to-day basis, a looming tax hike makes it harder to plan ahead.

The Main Street Tax Certainty Act, championed by Ways and Means Committee Chairman Rep. Jason Smith (R-MO) will make the 20% Small Business Tax Deduction permanent, ensuring local job creators can continue to raise wages, grow their businesses, and meet the needs of their communities.

Please call or email your U.S. Congressional representative and let him or her know how important the Main Street Tax Certainty Act is to your community and local businesses and encourage them to reach out to their colleagues to ensure it passes. We need your help to get this done! Please act now!

TAKE ACTION: Now is the time to urge Senators and Representatives to co-sponsor the Main Street Tax Certainty Act by explaining how a tax hike would impact small businesses. Consider sharing how much your taxes will go up if the 20% Small Business Deduction expires (Line 13 of your Form 1040).