Sunshine Sentinel

The National Federation of Independent Business (NFIB), a prominent advocate for small businesses in Florida, has released a report emphasizing the importance of the 20% Small Business Tax Deduction, advocating for its permanency. The report warns of a significant tax increase for the state's 3.3 million small businesses if Congress fails to make the deduction permanent within the year. The expiration of this provision could severely impact small businesses in Florida and the US economy at large, potentially leading to economic stagnation and increased financial pressure on local employers.

The report outlines how the tax rates for small businesses could sharply rise compared to larger corporations without the permanent deduction. In Florida, where the C-Corp tax rate remains at 26.5%, small businesses would face a hike to 39.6% if the provision lapses.

On the other hand, maintaining the deduction could result in substantial economic gains, with small business tax rates aligning more closely with those of larger competitors. Projections suggest an annual increase of 86,000 new jobs over the next decade in Florida, along with a $4.63 billion boost to the GDP annually for the first ten years, rising to $9.55 billion per year after 2035.

"Small businesses don’t just create jobs – they create opportunity, innovation, and strong local economies," said NFIB Florida Executive Director Bill Herrle. He stressed the potential negative impact of the deduction's expiration on economic growth and hiring, urging Congress to protect these businesses from what he termed an "unfair tax hike" by making the deduction permanent this Tax Day.

The 20% Small Business Tax Deduction, part of the Tax Cuts and Jobs Act of 2017, has been instrumental for many small business owners in their efforts to expand, hire, and raise wages. Should Congress not act swiftly to render it permanent, as posited by the NFIB, a considerable number of small businesses nationwide could face increased tax liabilities jeopardizing jobs and economic stability.

Further information on NFIB's advocacy and the full Florida report is available at: www.nfib.com/stopsmallbiztaxhike.