Urgent call to action: Main Street Tax Certainty Act seeks to stabilize the future for small businesses
Ninety-one percent of NFIB members said they support permanently extending the 20% Small Business Deduction. Currently, the deduction is set to expire at the end of 2025. NFIB is launching an extensive issue campaign during the August recess, urging members of Congress to make the 20% Small Business Deduction (Section 199A) permanent by passing the Main Street Tax Certainty Act.
Making the 20% Small Business Deduction permanent by passing the Main Street Tax Certainty Act is the number one advocacy priority of NFIB and small business owners. NFIB’s issue campaign includes paid media, earned media, targeted media interviews, videos, small business owner testimonials, and other content highlighting how the Main Street Tax Certainty Act could encourage job creation and prevent a massive tax hike on 9 out of 10 small businesses.
The 20% Small Business Deduction was created in the 2017 tax law to bring small businesses’ tax rates closer to that of their large, corporate competitors. It allows small businesses to deduct up to 20% of their qualified business income, which owners use to invest in their employees and plan for future business operations.
“If Congress takes no action, the 20% Small Business Deduction will expire in 2025, imposing a massive tax hike on a majority of America’s small businesses,” said Brad Close, NFIB President. “While members of Congress are back in their states and districts in August, small business owners want them to understand the importance of making the 20% Small Business Deduction permanent. Despite economic headwinds, small employers are poised to lead an economic comeback, and Congress has an opportunity to provide much-needed tax certainty, allowing them to grow and invest in their businesses. We are encouraged that this important legislation has been introduced in both the U.S. Senate and House and urge Congress to pass it this congress.”
The Main Street Tax Certainty Act has been introduced in the U.S. Senate by Senator Steve Daines (R-MT) and in the U.S. House by Representatives Lloyd Smucker (R-PA) and Henry Cuellar (D-TX). The 20% Small Business Deduction is set to expire in 2025, and without it, small businesses will have to limit their plans to grow, invest, and hire. Small business owners are unable to make plans for the future of their business until they know if they will continue to have this deduction, making it crucial for Congress to pass the Main Street Tax Certainty Act now instead of waiting until 2025 when it’s too late.
TAKE ACTION: Now is the time to urge Senators and Representatives to co-sponsor the Main Street Tax Certainty Act by explaining how a tax hike would impact small businesses. Consider sharing how much your taxes will go up if the 20% Small Business Deduction expires (Line 13 of your Form 1040).
