500 Days Until Massive Tax Hike Occurs For 90% of Small Businesses

August 19, 2024

500 Days Until Massive Tax Hike Occurs For 90% of Small Businesses

WASHINGTON, D.C. (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 taxes will increase on over 90% of small business owners if Congress fails to act. While 500 days may seem like a long way out, we are already starting to see evidence that this looming tax hike is affecting the morale and planning of small business owners. Last week, NFIB released its quadrennial “Problems and Priorities” survey which ranks the top 75 Problems and Priorities of small business owners in order from the biggest problem to the smallest. Coming in at number 3 out of 75 issues is “Uncertainty over economic conditions,” ranking number 4 is “Federal taxes on business income,” and ranking number 8 is “Uncertainty over government actions.” This survey demonstrates that business owners are operating in uncertain times and are worried that they are staring down a massive tax hike. This same tax hike would make federal taxes on business income an even more significant problem than they already report. Congress can help provide certainty to small business owners by passing the Main Street Tax Certainty Act (H.R. 4721, S. 1706), making the 20% Small Business Deduction permanent.” 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. It has empowered small business owners to overcome the economic challenges of the last few years – but it’s set to expire at the end of 2025. The Main Street Tax Certainty Act would make the 20% Small Business Deduction permanent and avoid a massive tax hike on a majority of America’s small businesses. NFIB recently released new video, radio and digital ads urging members of Congress to make the 20% Small Business Deduction permanent by passing the Main Street Tax Certainty Act. Learn more at www.SmallBusinessDeduction.com

Topics:

Economy

Get to know NFIB

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

Learn More