What it means: NFIB sponsored an event with The Hill featuring NFIB members, small business leaders, tax experts, and policymakers discussing the impact of the 20% Small Business Deduction (line 13 of Form 1040) and the consequences of its expiration.

Our take: “Planning is huge. A mom-and-pop, they’re trying to make it through the next month and the next year. But they need to be able to have some level of certainty that they’re going to be able to do that. The NFIB Uncertainty Index peaked in October. There’s a lot of uncertainty about what the future looks like, and a lot of this is because they don’t know what their taxes are going to look like after 2025,” said Adam Temple, Senior Vice President of Advocacy, NFIB.

Congressional perspective: “I do think there’s a real opportunity to do this in a bipartisan way…We want an economy that is working for the American people. We want more people to be able to participate in the American economy. We want an economy that incentivizes business development – we want to make it easier to start a new business, and it incentivizes additional investment that will make it easier to grow a business. We know that creates the jobs that are really important,” said Rep. Lloyd Smucker, Member, U.S. House Ways & Means Committee.

Take Action: Join over 95,000 small business owners in signing NFIB’s petition to stop the massive tax hike and make the 20% Small Business Deduction permanent.

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The Hill hosted an event sponsored by NFIB on Nov. 19 to discuss the impact of the 20% Small Business Tax Deduction, which is set to expire at the end of 2025 if Congress doesn’t take action to make it permanent. The event featured discussions regarding the looming tax hike on small businesses, the importance of the deduction for small businesses nationwide, and the economic fallout for America’s 33 million small businesses and their communities if Congress allows the Small Business Deduction to expire.

“It’s very tough to be able to grow and maintain if you don’t know what’s coming,” explained NFIB member Candice Price. “And a lot of small business owners are not aware that this deduction is going to go away. And then what do they do as they’re planning.”

The 20% Small Business Deduction was created as a part of the 2017 Tax Cuts and Jobs Act to level the playing field between small businesses and larger corporations. Next year, nine out of 10 small businesses will face a massive tax hike if Congress does not act by passing the Main Street Tax Certainty Act to make the 20% Small Business Deduction permanent.

Small business leaders, tax experts, and policymakers that joined the panel included:

• Candice Price, NFIB Member and Co-Owner of Home Team Auto Sales
• Alison Couch, NFIB Member and Owner of Ignite Accounting & Business Advisors
• Rep. Lloyd Smucker (R-PA), Member, U.S. House Ways & Means Committee & Lead Sponsor of the Main Street Tax Certainty Act
• Rep. Brad Schneider (D-IL), Member, U.S. House Ways & Means Committee
• Adam Temple, Senior Vice President of Advocacy, NFIB
• Dana Peterson, Chief Economist & Leader of the Economy, Strategy & Finance Center, The Conference Board
• Joby Young, Executive Vice President, American Farm Bureau Federation

View the full event online to hear more from the guests, and sign NFIB’s petition to stop the massive tax hike on small businesses and make the 20% Small Business Deduction permanent.