NFIB supports maintaining lower marginal tax rates. The 2017 tax law reduced five out of seven individual income tax rates. This adjustment directly impacts nine out of 10 small businesses organized as pass-through entities, as their income is taxed accordingly. The 2017 lower marginal rates of 10%, 12%, 22%, 24%, 32%, 35%, 37% were made permanent in recent tax legislation in July 2025.

NFIB supports reinstating a lower tax rate for small businesses organized as C-corporations. Nearly 20% of small employers are legally structured as C-corporations. In 2017, TCJA implemented a 21% corporate tax rate for these businesses. However, in doing so, the law eliminated provisions that allowed small businesses with less than $50,000 in taxable income to utilize a 15% rate. The effect of this flat rate was a tax increase for these small businesses. NFIB urges Congress to reinstate this lower tax rate for these businesses and adjust the taxable income threshold for inflation.

NFIB supports the repeal of the estate tax. The Tax Cuts and Jobs Act increased the estate tax exemption from $5.5 million for individuals and $11.1 million for those filing jointly. The increase had the effect of exempting more small family-owned businesses from the estate tax. A higher, permanent exemption rate of $15 million individually and $30 million jointly, indexed for inflation, was included in tax legislation that was signed into law in July 2025.