Millions of Jobs, Billions in Economic Growth at Stake if the 20% Small Business Deduction Expires

September 18, 2024

These reports illustrate what will happen to the small business economy if Congress does or doesn’t make the 20% Small Business Deduction permanent

Millions of Jobs, Billions in Economic Growth at Stake if the 20% Small Business Deduction Expires

What it means: A new economic impact analysis by Ernst & Young (EY) concluded that 1.2 million jobs would be created annually for the first ten years of the 20% Small Business Tax Deduction’s permanence and the GDP would increase by $750 billion in the small business sector. Our take: Stopping the massive tax hike is critical for the future of small businesses, and Congress must make the 20% Small Business Tax Deduction permanent. Take Action: Act This Week to Stop the Massive Tax Hike

TAKE ACTION

Amplify the Voice of Small Business Small business owners head to Capitol Hill next week with data and key findings from two new reports to urge members of Congress to stop the massive tax hike and make the 20% Small Business Deduction Permanent. Reinforce their efforts by flooding Congress with emails sharing how paying more in taxes impacts your business. Easily personalize our draft message and automatically send it to legislators based on your home or business address through the NFIB email system – make sure to use both your home and business address if they’re in different legislative districts to send one email to everyone who represents you.

TAKE ACTION

NFIB released two new reports regarding the 20% Small Business Tax Deduction, which is scheduled to expire at the end of next year. The reports illustrate what will happen to the small business economy if Congress fails to stop the massive tax hike. The Ernst & Young (EY) economic impact analysis, released in conjunction with NFIB, concluded that making the deduction permanent would create 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 an increase of $150 billion annually after that. Losing the 20% Small Business Deduction would wipe out these benefits for small businesses and the economy. The NFIB Tax Survey found that 59% of small business owners reported they would be negatively impacted should the 20% Small Business Deduction Expire. The full Ernst & Young (EY) economic impact analysis can be found here. The full 2024 NFIB Tax Survey can be found here. Take Action! Join small business owners nationwide telling Congress to stop the massive tax hike and make the 20% Small Business Deduction permanent.

Topics:

Economy

Research

Taxes

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