NFIB Principal of Federal Government Relations Josselin Castillo today joined WSYR’s “Syracuse’s Morning Show with Dave Allen” to discuss the importance of the federal 20% Small Business Deduction for Main Street businesses.

Castillo underscored the vital need for the tax provision and noted NFIB’s advocacy campaign urging Congress to make the deduction permanent.

“It is so important that they make permanent the small business deduction, which is why NFIB went live with a seven-figure campaign to ensure that every lawmaker knows just what is at stake,” said Castillo. “In New York alone failure to make this provision permanent would result in an effective tax rate of 46% for New York businesses while big corporations sit pretty at 31%. That would just be disastrous.”

Recent NFIB polling showed the public’s strong support for Main Street businesses on this issue. 79% of all voters believe that the Small Business Deduction is going to have a positive impact on the economy, and 91% believe that small businesses rely on this deduction to stay in business. 51% are concerned that the economy will suffer if the deduction is allowed to expire.

If Congress fails to act, 26 million small businesses that have been taking advantage of the 20% Small Business Deduction on their federal taxes are facing a huge tax increase when the deduction expires at the end of this year. 

The 20% Small Business Deduction was created as a part of the 2017 tax law to level the playing field between small businesses and larger corporations. However, the tax reductions for large corporations under the 2017 law were made permanent. The Small Business Deduction has empowered small business owners to overcome the economic challenges of the last few years. 

Listen to Castillo’s remarks here: https://www.youtube.com/watch?v=xmdTTXPNCVs and find more information at Stop the Small Business Tax Hike.

Related Information for New York:

• NFIB-20-Small-Business-Deduction-Impact-NY.pdf