The 20% Small Business Tax Deduction: Why It Matters & What’s Next?

Small businesses are one of the bedrocks of the U.S. economy, employing nearly half of the American workforce and representing over 40% of America’s GDP.

Challenges like inflation and high supply costs have plagued small businesses for years and now an important small business tax provision is set to expire next year.

Created as part of the 2017 Tax Cuts and Jobs Act (TCJA), the 20% Small Business Tax Deduction allows small business owners to deduct up to 20 percent of their business income, bringing their tax rates closer to their big business counterparts and allows them to grow their businesses, hire new workers, raise wages for their employees, and give back to their communities.

The TCJA made corporate tax cuts permanent, but the 20% Small Business Deduction is set to expire at the end of next year, which could raise taxes for most small businesses.

What would this tax hike mean for small businesses across the country? What will the economic fallout be if this tax deduction, critical to the finances of small businesses, expires? And what else should be done to help America’s 33 million small businesses?

Join The Hill for an event sponsored by the National Federation of Independent Business (NFIB), along with other small business leaders, tax experts, and policymakers, as we delve into the impact of the Small Business Deduction and the potential consequences of its expiration.