Sens. Boozman and Cotton Are Working To Stop a Major Tax Hike on Arkansas Small Businesses. Congress Should Follow Their Lead.

October 31, 2023

“If Congress doesn’t act soon, small businesses will face one of the biggest tax hikes in history, devastating our families and communities.”

Sens. Boozman and Cotton Are Working To Stop a Major Tax Hike on Arkansas Small Businesses. Congress Should Follow Their Lead.

LITTLE ROCK (Oct. 31, 2023) – “There are numerous critical issues facing America and Arkansas, yet one of the most important is something you may not have heard much about,” writes NFIB State Director Katie Burns in an op-ed for the Arkansas Democrat-Gazette. “If Congress doesn’t act soon, small businesses will face one of the biggest tax hikes in history, devastating our families and communities. Fortunately, Arkansas Senators John Boozman and Tom Cotton have taken notice and are standing up for Main Street. But they need Congress to follow suit.” CLICK HERE to read the full op-ed. Excerpts are below: Save Deduction Arkansas Democrat-Gazette Oct. 26, 2023 By: Katie Burns There are numerous critical issues facing America and Arkansas, yet one of the most important is something you may not have heard much about. […] Fortunately, Arkansas Sens. John Boozman and Tom Cotton have taken notice and are standing up for Main Street. But they need the rest of Congress to follow suit. The Tax Cuts and Jobs Act in 2017 gave every kind of business historic relief. Yet while big businesses received a permanent cut to the corporate tax rate, 85 percent of small employers organized as pass-through businesses only received a temporary deduction that expires in 2025. […] The 20 percent Small Business Deduction helps level the playing field between Main Street and Wall Street. It lets Arkansas job creators–the shops that dot street corners and define communities–deduct 20 percent of their business income every year. All told, this tax cut has saved small businesses billions and counting. They’ve poured this money right back into their workers and communities. They’ve given raises, bonuses, and bigger benefits packages. They’ve created jobs, which matters because small business creates two-thirds of net new jobs overall. They’ve invested in new technology and equipment that will keep them competitive. And they’ve given back to worthy causes large and small. […] Nearly half [of small business owners] have told my organization they’re already cutting back because they aren’t certain about whether the tax cut will survive. They’re saving up the money they’ll owe the IRS. But they’d rather spend it giving raises and giving back. That’s why Arkansas needs Congress to act sooner rather than later. […] Congress could end this uncertainty tomorrow if lawmakers wanted. The Main Street Tax Certainty Act would make the 20 percent Small Business Deduction permanent. It has bipartisan support in the U.S. House, and support from both Senator Boozman and Senator Cotton in the U.S. Senate. They’re standing up for small business. Now small business needs other senators and representatives in Congress to follow suit. Main Street is counting on Congress’ action, especially since Wall Street already has permanent relief. […] The sooner they get it, the sooner they’ll lift Arkansas to new heights. Background: The 20% Small Business Deduction (Section 199A) allows small businesses organized as pass-throughs (S corporations, LLCs, sole proprietorships, or partnerships) the ability to deduct up to 20% of qualified business income and is scheduled to expire in 2025. The Small Business Deduction was created in the 2017 tax law to bring small businesses’ tax rates closer to that of their large, corporate competitors. In a recent NFIB member ballot, 91% of NFIB members said they supported permanently extending the expiring provisions of the 2017 tax law. According to NFIB’s 2021 tax survey, nearly half of small business owners (48%) reported the uncertainty of expiring tax provisions is impacting their current or future business plans. Learn more at www.SmallBizDeduction.com

Topics:

Uncategorized

State:

Arkansas

Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Learn More