Bluegrass Times

Business First of Louisville published an op-ed by NFIB State Director Tom Underwood regarding the need for Congress to make the 20% small business deduction permanent. The deduction is scheduled to expire at the end of 2025.

Underwood emphasized, "Kentucky’s small businesses will see a big increase in their federal taxes unless Congress sets its differences aside long enough to stop it." He mentioned that while Wall Street's tax cuts became permanent after the 2017 tax reforms, the same did not apply to Main Street's benefits.

Small businesses in Kentucky are rallying behind the Main Street Tax Certainty Act. Underwood stated, "Without it, local businesses will be hit with a 20 percent tax hike overnight." He pointed out the challenges small businesses face, including inflation and economic uncertainty, while highlighting that the expiration of the deduction might lead some businesses to shut down.

Congress initially included this deduction to help small businesses compete with larger chains and to support job creation and community development. However, the planned expiration on New Year's Eve, 2025, creates instability. Underwood argued, "Small business owners need stability. They don’t have it right now, and that creates uncertainty."

He noted that the Main Street Tax Certainty Act has bipartisan support, with co-sponsorship from some Kentucky representatives and Senator Rand Paul. However, he mentioned, "That’s good, but it’s not enough," calling for unity within Kentucky's delegation.

Underwood highlighted the role of small businesses in Kentucky's economy, reminding readers that they account for 99 percent of businesses in the state and contribute significantly to employment and community welfare. He concluded by urging legislative action to make the deduction permanent and stated, "We need our entire congressional delegation to make the small business deduction permanent by supporting the Main Street Tax Certainty Act."