NFIB State Director Jim Brown recently spoke with The Nashville Post regarding efforts to maintain the 20% Small Business Deduction. Originally enacted by Congress in 2017, this deduction is set to expire in 2025 unless The Main Street Tax Certainty Act is passed to make it permanent. Brown emphasized the deduction’s success, stating it “has been a huge success, allowing small businesses to reduce their tax burden meaningfully.” He noted that the savings have enabled local businesses to support their workforce and tackle challenges such as inflation.
Brown highlighted NFIB’s role in securing the inclusion of this deduction in the Tax Cuts and Jobs Act after initial resistance from Congress. According to him, “countless NFIB members have told us they’ve used those dollars to invest in their employees and business operations,” further explaining that these savings have helped address inflation and rising labor costs.
If no action is taken before its expiration, Brown warned that nine out of ten American small businesses could face significant tax increases. With nearly 300,000 members nationwide, he expressed concern about the uncertainty facing these businesses. Making the deduction permanent would help align small business tax rates more closely with larger corporations and support growth, hiring, employee welfare, and community contributions.
A recent Ernst & Young analysis suggested that making the deduction permanent could result in creating 1.2 million new jobs annually for the first decade and 2.4 million each year thereafter.
When asked about obstacles to extending the tax deduction, Brown pointed out political challenges due to an election year but stressed ongoing efforts at various levels including opinion editorials, radio discussions, roundtables with congressional leaders, and grassroots actions involving petitions and direct communications with senators and representatives.
He concluded by noting that uncertainty poses significant challenges for small business owners as they plan for 2025. This delay could adversely affect not only business operations but also employees and broader economic health.
