Beaver State News

Two recent reports have brought attention to the potential consequences if Congress allows the 20% Small Business Deduction to expire next year. One report includes data specific to the state of Oregon. Anthony Smith, the Oregon state director for the National Federation of Independent Business (NFIB), expressed the importance of making this deduction permanent. "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,” said Smith.

The NFIB, in partnership with EY, released its 2024 Tax Survey and additional findings that illustrate the impact on jobs and GDP. EY projects that making the deduction permanent could increase U.S. job equivalents by approximately 1.2 million in each of the first ten years. This number could grow to 2.4 million jobs each year afterward. Moreover, the U.S. GDP at small businesses is expected to rise by $75 billion annually during the first decade and could reach $150 billion annually thereafter. For Oregon, this translates to an estimated 18,000 jobs and $986 million each year over the next ten years, with these figures potentially rising to 35,000 jobs and $2 billion annually after 2035.

According to NFIB’s Tax Survey, if the Small Business Deduction expires, 61 percent of small businesses plan to increase prices, 44 percent will delay or cancel capital investments, and 36 percent will postpone or cancel hiring. Further, 16 percent might freeze wages or reduce benefits, and 10 percent aim to improve productivity and efficiency, with the rest considering different actions.

NFIB’s vice president of Federal Government Relations, Jeff Brabant, also addressed the Senate Committee on Finance, which includes Oregon Senator Ron Wyden as chair. Brabant urged members of Congress to consider the value of small businesses, stating, “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 to advocate for small and independent businesses, stressing their role in the economy and pushing for policies that support them.