NFIB’s Josselin Castillo recently appeared on WSYR’s “Syracuse’s Morning Show with Dave Allen” to discuss the federal 20% Small Business Deduction. Castillo emphasized the importance of this tax provision and highlighted NFIB’s efforts to advocate for its permanence.
“It is so important that they make permanent the small business deduction, which is why NFIB went live with a seven-figure campaign to ensure that every lawmaker knows just what is at stake,” said Castillo. He pointed out that without making this provision permanent, New York businesses could face an effective tax rate of 46%, compared to 31% for larger corporations. “That would just be disastrous,” he added.
Recent polling by NFIB indicates strong public support for Main Street businesses regarding this issue. According to the poll, 79% of voters believe the Small Business Deduction positively impacts the economy, while 91% think small businesses rely on it to remain operational. Additionally, 51% express concern about potential economic consequences if the deduction expires.
The expiration of this deduction at year-end could mean a significant tax increase for approximately 26 million small businesses currently benefiting from it. The deduction was initially introduced in the 2017 tax law as a measure to balance conditions between small and large enterprises. However, while reductions for large corporations were made permanent under this law, the same was not done for small businesses.
Castillo’s remarks can be accessed here: https://www.youtube.com/watch?v=xmdTTXPNCVs and further details are available at Stop the Small Business Tax Hike.
