WASHINGTON, DC (August 19, 2024) – The National Federation of Independent Business (NFIB) released the following statement from Jeff Brabant, NFIB Vice President of Federal Government Relations.
“In 500 days, the 20% small business deduction will expire, and over 90% of small business owners will face higher taxes unless Congress takes action. While 500 days may seem like a long way off, we are already seeing evidence that this impending tax increase is impacting the morale and plans of small business owners.
Last week, the NFIB released its quadrennial “Issues and Priorities” survey, which ranks the top 75 issues and priorities facing small business owners from biggest to least problematic. Of the 75 issues, No. 3 is “uncertainty about economic conditions,” No. 4 is “federal taxes on business income,” and No. 8 is “uncertainty about government actions.”
“This survey shows that business owners are operating in uncertain times and are concerned about facing large tax increases that would make federal taxes on business income even more of a problem than already reported. Congress can provide certainty to small business owners by passing the Main Street Tax Finalization Act (H.R. 4721, S. 1706) and making the 20% small business deduction permanent.”
The 20% small business credit was enacted as part of the 2017 tax law to create equality between small and large businesses. The credit has helped small business owners overcome the economic challenges of the past few years. However, the credit is set to expire at the end of 2025. The Main Street Tax Finalization Act would make the 20% small business credit permanent, avoiding a significant tax increase for the majority of America’s small businesses.
NFIB recently released new video, radio and digital ads urging lawmakers to pass the Main Street Tax Final Act and make the 20% small business tax credit permanent.
For more information, visit www.SmallBusinessDeduction.com.