The National Federation of Independent Business (NFIB) has voiced strong support for the reintroduction of the Main Street Tax Certainty Act, legislation designed to make the 20% Small Business Deduction permanent. The measure, reintroduced by Sen. Steve Daines (R-MT) and Rep. Lloyd Smucker (R-PA), aims to prevent a substantial tax increase on over 30 million small businesses scheduled to take effect at the end of this year.
“If Congress fails to act, more than 30 million small businesses will face a massive tax hike at the end of this year,” said Brad Close, NFIB President. “The 20% Small Business Deduction allows nine out of 10 Main Street job creators to compete, grow their business, hire new employees, raise wages, and give back to their communities. NFIB is grateful for Sen. Daines and Rep. Smucker for their consistent leadership to stop the small business tax hike and urges Congress to pass the Main Street Tax Certainty Act to make the Small Business Deduction permanent.”
Created as part of the 2017 tax law, the 20% Small Business Deduction was introduced to provide tax relief to small businesses, leveling the playing field with larger corporations. Without congressional action, the deduction will expire at the end of 2025, significantly increasing the tax burden on small business owners nationwide.
An economic impact analysis conducted by Ernst & Young (EY) highlights the potential benefits of making the deduction permanent. The report estimates that extending the deduction would:
- Create 1.2 million new jobs annually during the first decade, and 2.4 million jobs annually in subsequent years.
- Boost the small business sector’s contribution to GDP by $750 billion over the first ten years and by $150 billion annually thereafter.
NFIB’s endorsement of the Main Street Tax Certainty Act underscores the critical importance of the legislation for small businesses. The organization is urging Congress to act swiftly to pass the bill and secure permanent tax relief for millions of Main Street entrepreneurs.
The proposed legislation represents a significant opportunity to ensure continued economic growth and stability in the small business sector, which serves as a backbone of the American economy.
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