Gem State Wire

The National Federation of Independent Business (NFIB), a prominent organization advocating for small businesses in the United States, has published a report highlighting the significance of the 20% Small Business Tax Deduction for Idaho. The report stresses the importance of making this deduction permanent, as the potential failure to do so could result in increased taxes for the more than 200,000 small businesses in Idaho.

Without the permanency of this tax provision, small businesses may face tax rates that significantly exceed those of their larger corporate counterparts. Currently, if not extended, the C-Corp tax rate would remain at 26.7% in Idaho, whereas the small business rate could rise to 45.3%. According to the report, maintaining the deduction would not only level the playing field with competitors but also produce substantial economic benefits. These benefits include the creation of approximately 9,000 jobs annually over the next decade and an annual Gross Domestic Product (GDP) increase of $397 million initially, and $820 million per year after 2035.

Suzanne Budge, NFIB Idaho State Director, commented, "If Congress allows the 20% Small Business Deduction to expire, a massive tax hike on small businesses will take effect, stifling growth, putting the brakes on hiring, and endangering countless small businesses." She emphasized the role of small businesses in fostering job creation, innovation, and strong local economies, urging lawmakers to act swiftly to support them.

The 20% Small Business Tax Deduction, originally a provision of the Tax Cuts and Jobs Act of 2017, has enabled many entrepreneurs to grow their businesses, hire additional staff, and raise wages. Should Congress fail to extend this benefit, nine out of ten small businesses would face a heavier tax burden, posing a threat to nationwide employment and economic stability.

The NFIB, operational for over 80 years, has consistently supported small and independent business owners across the United States. More information about this advocacy work is available at nfib.com.

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