Jeff Brabant, Vice President of Federal Government Relations at the National Federation of Independent Business (NFIB), recently appeared on WSYR-Syracuse and WGY-Albany radio channels. Speaking with host Dave Allen on May 21, Brabant highlighted the significance of making the federal Small Business Deduction permanent.
During his appearance, Brabant pointed to NFIB’s recent poll that underscores strong public support for small businesses in this matter. According to the poll, “79% of all voters believe that the Small Business Deduction is going to have a positive impact on the economy,” and “91% believe that small businesses rely on this deduction to stay in business.” Furthermore, “51% are concerned that the economy will suffer if the deduction is allowed to expire.”
Brabant warned that without congressional action, 26 million small businesses benefiting from a 20% deduction on their federal taxes could face substantial tax increases when it expires at year-end. In New York specifically, failing to make this provision permanent could lead to an effective tax rate of 46% for local businesses compared to 31% for larger corporations.
The Small Business Deduction was established under the 2017 tax law aiming to balance opportunities between smaller enterprises and large corporations. While reductions for large corporations were made permanent under this law, similar permanence was not granted for small businesses.
For more details about Brabant’s discussion or further resources like NFIB’s interactive map and new tax calculator, listeners can visit Stop the Small Business Tax Hike online.
