Washington, D.C. (June 23, 2025) – In a new op-ed published in RealClearMarkets, Peter Hansen, NFIB Director of Research and Policy Analysis, explains why taxes are small business owners’ single most important problem according to NFIB’s May SBET Survey and why Congress should make the Small Business Deduction permanent.

Hansen writes:

“Imagine you’re climbing a mountain with a backpack full of heavy stones. You’re strong and have the will to manage, but the weight is significant. It is always a pain, and it always slows you down. This is, more or less, what taxes are for small business owners.

“For more than 50 years, the National Federation of Independent Business has tracked the top issues facing small business owners (alongside other metrics like revenue and employment growth). This extensive research history shows that taxes have been the most consistent issue faced by Main Street.”

[…]

“But times are changing: This May, for the first time since 2017, taxes were the single top issue for small businesses. Inflation has cooled substantially from its 2022 peak, and the tight labor market has let off some steam. While those issues calm, taxes remain the same as ever, and are once again the top issue for Main Street.”

[…]

“Back to today, let’s ask why taxes are once again at the top of the list of problems for small businesses. The waning impact of labor shortages and inflation is the main reason, but is there any looming threat that might be contributing to small business owners’ tax concerns right now? 

“Absolutely: The 20% Small Business Deduction is set to expire at the end of the year—less than 200 days away. In the absence of congressional action, small businesses are facing a massive tax hike. But this May, small business owners were given a tangible promise of relief: The One Big Beautiful Bill Act not only preserves the 20% deduction but expands it to 23% and makes it permanent.”

Read the full op-ed here.

The NFIB Research Center has collected Small Business Economic Trends data with quarterly surveys since the fourth quarter of 1973 and monthly surveys since 1986. Survey respondents are randomly drawn from NFIB’s membership. The report is released on the second Tuesday of each month.

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