Gem State Wire

For Boise, Idaho, and other states, the potential lapsing of the 20% Small Business Deduction next year raises concerns about economic fairness and growth. Initially established under the 2017 Tax Cuts and Jobs Act (TCJA), this deduction aims to afford small businesses considerable relief, similar to the enduring benefits awarded to larger corporations.

In a recent disclosure, two comprehensive reports underscored the significance of maintaining this deduction beyond 2025. Suzanne Budge, the Idaho State Director for NFIB, emphasized, "One report had some Idaho-specific numbers, and the boon to our state’s economy from making the Small Business Deduction permanent should be welcomed and embraced by every policymaker." She continued, "Congress should act on this immediately and resolutely.”

Supporting the call for permanence, NFIB's 2024 Tax Survey, alongside collaboration with EY (Ernst & Young), presents a compelling argument. EY explains, "The tax change is estimated to increase US job equivalents at small businesses by approximately 1.2 million jobs, on average, in each of the first ten years and growing over time to 2.4 million each year after that." Furthermore, extending the Section 199A deduction could enhance the US GDP at small businesses “by $75 billion annually over the first 10 years; and growing over time to $150 billion annually each year thereafter.”

For Idaho, such economic benefits translate into the creation of 9,000 jobs and a GDP boost of $397 million annually in the first decade. Post-2035 projections indicate 17,000 jobs and $820 million GDP annually.

If the deduction halts, consequences loom large for small business owners. NFIB's survey anticipates that if the deduction expires, 61% of business owners would increase prices, 44% might delay or cancel new investments, while 36% could postpone hiring. Wages could freeze or benefits reduce for 16%, potentially curtailing growth and productivity.

Jeff Brabant of NFIB urged Congress to weigh the gravity of their "small businesses as America's backbone" proclamations. He stated, “If they truly believe that statement and value small businesses in their communities, then making the 20% small business deduction permanent should be an easy decision.”

With 80 years of advocacy behind it, NFIB remains dedicated to representing small and independent businesses across America. More details on the organization's initiatives and news can be found on their website, nfib.com, or by following their updates on social media.