NFIB Member Businesses Featured in Video Ads to Stop a Scheduled Tax Hike

December 14, 2022

New ads explain why Congress should take action to stop the Small Business Deduction from expiring

NFIB Member Businesses Featured in Video Ads to Stop a Scheduled Tax Hike

NFIB recently launched a long-term, multi-million-dollar advertising campaign featuring small business owners who explain the importance of making the crucial Small Business Deduction permanent. NFIB members are fighting for permanency and two small businesses in West Virginia were featured in the ads to explain the direct positive impact the deduction had on their small business and employees. Since it took effect in 2018, the Small Business Deduction, a federal tax deduction, has allowed small businesses organized as pass-through entities like Sole Proprietorships, S-Corporations, Partnerships, or LLCs, to deduct up to 20% of their qualified business income. Small businesses across the nation have benefited from this tax cut, using the funds from their deduction to invest in employees, benefits, and more. Despite its positive impact, the Small Business Deduction (Section 199A) is set to expire after 2025, resulting in a substantial tax increase. The uncertainty of the scheduled tax increase also complicates small business owners’ ability to plan for the future of their business. In the advertisements, NFIB members from Coal River Coffee and Devil’s Due Distillery explained how the Small Business Deduction has benefited their businesses, and why they need the deduction to be made permanent. Now is a critical time for small business owners to invest in their employees and be able to prepare for the future. “The Small Business Deduction, created to bring small businesses’ tax rates closer to that of their large, corporate competitors, has been a crucial component of the 2017 tax cut law, especially during the pandemic. It has allowed small business owners to invest in their employees and business operations and plan for the future,” said NFIB President Brad Close. “While Congress made the 21% corporate rate permanent, it let the Small Business Deduction expire after 2025. It is critical that Congress make the Small Business Deduction permanent.” The Main Street Tax Certainty Act, introduced in both the U.S. House and Senate, would make the Small Business Deduction and its benefits permanent. You can click here for a simple flowchart to determine if you’re benefiting from the Small Business Deduction. As Congress continues to consider changes to tax policy, it is important to show that the Small Business Deduction has robust support from NFIB members. Take Action: Tell us what you’ve been able to do with your Small Business Deduction in 2022.

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Watch Coal River Coffee’s ad here: