Beaver State News

Two recent reports, including one with state-specific data, underscore the potential economic impact if Congress allows the 20% Small Business Deduction to expire next year. The reports were released by NFIB and Ernst & Young (EY).

"Both reports should eliminate whatever lingering doubts Congress has about the paramount importance of making the 20% Small Business Deduction permanent and not letting it lapse at the end of 2025," stated Anthony Smith, Oregon state director for NFIB.

The EY report provides projections on job creation and GDP growth linked to making this deduction permanent. "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." Additionally, "permanently extending the Section 199A deduction is estimated to increase US GDP at small business by $75 billion annually over the first 10 years; and growing over time to $150 billion annually each year thereafter."

For Oregon specifically, these figures translate into an annual gain of 18,000 jobs and $986 million in GDP for the first decade. After 2035, these numbers are expected to rise to 35,000 jobs and $2 billion annually.

NFIB's Tax Survey indicates that if this deduction expires, a significant portion of small business owners plan various measures: raising prices (61%), postponing or canceling capital investments (44%), delaying hiring (36%), freezing wages or reducing benefits (16%), increasing productivity or efficiency (10%).

Jeff Brabant from NFIB testified before the Senate Committee on Finance chaired by Senator Ron Wyden. He emphasized: "Members of Congress should ask themselves if they really believe it when they say, ‘small businesses are the backbone of America.’ 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."

NFIB continues its advocacy efforts for America's small businesses across all states.