Small businesses across the country are being given a boost by the 20% Small Business Deduction, which was introduced in President Trump’s tax cuts. NFIB President Brad Close emphasizes the importance of this deduction and stresses that Congress needs to pass the Main Street Tax Certainty Act to provide stability for small businesses to prosper and expand.
The Small Business Deduction has been utilized by approximately nine out of 10 small businesses and has allowed for a 20% deduction of qualified business income. This tax cut is considered one of the largest for small businesses in history and has helped create a more level playing field in comparison to larger corporations. The savings from this deduction have enabled small businesses to create jobs, increase wages, and foster growth during a critical period for the U.S. economy.
Small businesses require confidence in order to continue investing, expanding, and contributing to their communities. Close advocates for making the Small Business Deduction permanent by passing the bipartisan Main Street Tax Certainty Act. This bill aims to make the 20% Small Business Deduction a permanent fixture and has been introduced in both houses of Congress by Senator Steve Daines (R-MT) and Representatives Lloyd Smucker (R-PA) and Henry Cuellar (D-TX).
NFIB has identified making the Small Business Deduction permanent as its top policy priority for 2024. Passing this bill promptly will provide much-needed assurance to small businesses across the country, allowing them to continue thriving and contributing positively to local economies.