The 20% Small Business Deduction is Set to Expire Next Year if Congress Does Not Act Now
NFIB small business member Lana Pol testified at The Success of Pro-Growth, Pro-Worker Tax Policy in the American Midwest field hearing held by the House Ways & Means Committee’s at the Iowa State Fairgrounds. The small business deduction was an important part of the Tax Cuts and Jobs Act of 2017 and is set to expire next year. Lana spoke on behalf of Iowa small business owners to share how beneficial the small business deduction is for Main Street and why it should be made permanent.
“I’d like to thank the House Ways & Means Committee for allowing me the opportunity to testify on behalf of Iowa small businesses,” said NFIB Small Business Member Lana Pol. “Small businesses are the foundation of our economy. Congress created the Small Business Deduction so that small businesses like mine could be on an equal playing field with large corporations. Unless Congress acts now, small businesses will see a significant tax hike at a time when they can least afford it. I urge Congress to preserve our businesses, communities, and economy by supporting the Main Street Tax Certainty Act.”
The 20% Small Business Deduction (Section 199A) allows small businesses organized as pass-throughs (S corporations, LLCs, sole proprietorships, or partnerships) the ability to deduct up to 20% of qualified business income and is scheduled to expire in 2025. Ninety percent of American small businesses are structured as pass-through entities. The Main Street Tax Certainty Act would make the 20% Small Business Deduction permanent and is a top legislative priority for small businesses.
