The National Federation of Independent Business (NFIB) has introduced two digital tools aimed at illustrating the economic impact of the 20% Small Business Tax Deduction in Arkansas. These tools are designed to assist small business owners, policymakers, and the public in understanding the potential consequences if Congress does not make this deduction permanent.
One of the new resources is an interactive map that shows how extending the Small Business Deduction could boost job creation and GDP growth across every congressional district in Arkansas. Additionally, NFIB has launched a tax calculator to help small business owners estimate how much more they might owe in federal income taxes if the deduction expires in 2026.
“These tools shine a light on what Arkansas’ small businesses could lose if the 20% deduction goes away,” stated NFIB State Director Katie Burns. “A big tax hike would make it harder for local businesses to hire, grow, or even stay open. Congress needs to act now to protect our small businesses and the communities they support.”
According to NFIB’s interactive map, extending the deduction could result in an increase of 20,000 jobs and $908 million in GDP for Arkansas over the next decade. The district-level data provided by these tools allow lawmakers and local leaders to see precisely how their communities might benefit from making the tax deduction permanent or suffer if it is not.
The tax calculator offers individual small business owners projections of potential tax increases should the deduction not be extended. For instance, an Arkansas small business owner with a personal income of $75,000 and qualified business income of $150,000 might face a tax increase exceeding $13,000 depending on their financial situation.
NFIB also commended the U.S. House of Representatives for passing the One Big Beautiful Act earlier today. This legislation is described as one of the most pro-small business measures recently enacted, offering a chance for over 33 million small business owners to receive permanent tax relief.
For further information about these tools and NFIB’s efforts to support Arkansas’ small businesses, visit www.SmallBusinessDeduction.com.
