The National Federation of Independent Business (NFIB), Florida’s leading small business advocacy organization, released a new report outlining the benefits the 20% Small Business Tax Deduction will bring to Florida if it is made permanent. The report also spotlights that the 3.3 million small businesses in Florida could face significantly higher taxes if Congress does not make the 20% Small Business Deduction permanent this year. The report outlines the severe consequences for small businesses in Florida and the broader U.S. economy that would result from the provision’s expiration, highlighting potential economic slowdown and increased financial strain on local businesses.

The report highlights a stark contrast in tax rates between small businesses and their larger corporate competitors if the deduction is not made permanent. In Florida, the C-Corp tax rate would remain at 26.5%, while the small business rate would surge to 39.6%.

However, making the deduction permanent would lead to significant economic benefits, leaving the small business tax rate on a level playing field with its competitors. Additionally, Florida is projected to gain 86,000 new jobs annually over the next 10 years if the deduction remains in place, including an annual GDP increase of $4.63 billion for the first decade and $9.55 billion per year beyond 2035.

View the report for Florida here.

“Small businesses don’t just create jobs – they create opportunity, innovation, and strong local economies,” said NFIB Florida Executive Director Bill Herrle. “If Congress allows the 20% Small Business Deduction to expire at the end of this year, Florida’s small businesses will face a massive tax hike that will stifle economic growth and slow hiring plans. This Tax Day, Congress should act quickly to protect small businesses from an unfair tax hike and make the 20% Small Business Deduction permanent.”

The 20% Small Business Tax Deduction, a key provision of the Tax Cuts and Jobs Act of 2017, has empowered millions of small business owners to expand, hire employees, and increase wages. If Congress does not act to make it permanent this year, nine out of 10 small businesses will face a significantly higher tax burden, threatening jobs and economic stability nationwide.

For more information about NFIB’s advocacy efforts and to access Florida’s report, visit: www.nfib.com/stopsmallbiztaxhike.