The National Federation of Independent Business (NFIB) emphasizes the significant impact that the potential expiration of the 20% Small Business Deduction would have on North Carolina’s economy. According to Gregg Thompson, NFIB State Director, two NFIB reports highlight what retaining this deduction means for local businesses. Although the reports do not provide data specific to North Carolina, Thompson believes they demonstrate the deduction’s importance.
Thompson asserts, “Small business is the foundation of North Carolina’s economy. This deduction has enabled local businesses to overcome many of the economic challenges they’ve faced over the past several years.”
He also warns that, “If this deduction is allowed to expire in 2025, nine out of 10 Main Street businesses would see a massive federal tax increase that would make it harder for them to create jobs, serve their customers, and support their communities.”
This deduction, enacted in 2017, is set to expire in 2025 unless Congress acts to make it permanent.
