JEFFERSON CITY, Mo. – The National Federation of Independent Business (NFIB), Missouri’s leading small business advocacy organization, released a new report outlining the benefits the 20% Small Business Tax Deduction will bring to Missouri if it is made permanent. The report also highlights that the 579,000 small businesses in Missouri could face significantly higher taxes if Congress does not make the 20% Small Business Deduction permanent. The report outlines the severe consequences for small businesses in Missouri and the broader U.S. economy that would result from the provision’s expiration, highlighting potential economic slowdown and increased financial strain on local businesses.
The report highlights a stark contrast in tax rates between small businesses and their larger corporate competitors if the deduction is not made permanent. In Missouri, the C-Corp tax rate would remain at 25%, while the small business rate would surge to 44.3%.
However, making the deduction permanent would lead to significant economic benefits, leaving the small business tax rate on a level playing field with its competitors. Additionally, Missouri is projected to gain 23,000 new jobs annually over the next 10 years if the deduction remains in place, including an annual GDP increase of $1.12 billion for the first decade and $2.32 billion per year beyond 2035.
View the report for Missouri here.
“Missouri’s small businesses are essential for job creation and strengthening our local economy,” said NFIB Missouri State Director Brad Jones. “If Congress allows the 20% Small Business Deduction to expire, a massive tax hike on small businesses will take effect, which will stifle growth and delay hiring plans. With the deduction set to expire this year, lawmakers must act quickly to protect small businesses and the communities they support.”
The 20% Small Business Tax Deduction, a key provision of the Tax Cuts and Jobs Act of 2017, has empowered millions of small business owners to expand, hire employees, and increase wages. If Congress does not act to make it permanent this year, nine out of 10 small businesses will face a significantly higher tax burden, threatening jobs and economic stability nationwide.
For more information about NFIB’s advocacy efforts and to access Missouri’s report, visit: www.nfib.com/stopsmallbiztaxhike.
For 80 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is nonprofit, nonpartisan, and member-driven. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses, and remains so today. For more information, please visit nfib.com.