LITTLE ROCK – Arkansas Senators John Boozman and Tom Cotton are advocating against a significant tax increase that could impact small businesses in the state. The National Federation of Independent Business (NFIB) State Director, Katie Burns, highlighted this issue in an op-ed for the Arkansas Democrat-Gazette.
Burns emphasized the urgency of congressional action to prevent what she described as “one of the biggest tax hikes in history” for small businesses. She noted that while large corporations received a permanent tax cut under the 2017 Tax Cuts and Jobs Act, small businesses organized as pass-through entities only received a temporary deduction set to expire in 2025.
The 20 percent Small Business Deduction allows these smaller enterprises to deduct a portion of their business income annually. This deduction has reportedly saved billions for small businesses, enabling them to reinvest in their workforce and communities through raises, bonuses, job creation, and charitable contributions.
Burns pointed out that nearly half of small business owners are already reducing spending due to uncertainty about the future of this tax cut. She urged Congress to act swiftly by passing the Main Street Tax Certainty Act, which aims to make the deduction permanent. The bill has bipartisan support in both chambers of Congress.
According to NFIB data, 91% of its members favor extending the expiring provisions permanently. Nearly half reported that uncertainty over these provisions is affecting their business planning.
For more information on this issue, visit www.SmallBizDeduction.com.
