The National Federation of Independent Business (NFIB), a prominent small business advocacy group, has unveiled a report detailing the potential impact of the 20% Small Business Tax Deduction in Nevada. The report emphasizes the benefits of making the tax deduction permanent, which could affect over 333,000 small businesses in the state.
The findings indicate that without permanent adoption of this tax deduction, small businesses in Nevada could face significant tax increases. The potential expiration of the deduction is said to pose severe consequences for both the local and national economy, potentially slowing economic growth and increasing financial strain on small businesses.
One notable aspect of the report highlights the tax discrepancy between small businesses and larger corporations should the deduction lapse. The C-Corp tax rate would remain at 21%, while small businesses could see their rate increase to 39.6%.
Conversely, should the deduction be made permanent, Nevada could experience notable economic gains, including the creation of 12,000 new jobs annually over a decade. Additionally, the state may see an annual GDP increase of $659 million for the first 10 years, and $1.36 billion per year beyond 2035.
Tray Abney, NFIB Nevada State Director, remarked, “Small businesses don’t just create jobs—they create opportunity, innovation, and strong local economies. If Congress allows the 20% Small Business Deduction to expire, a massive tax hike on small businesses will take effect, stifling growth, putting the brakes on hiring, and endangering countless small businesses.”
The deduction, part of the Tax Cuts and Jobs Act of 2017, has reportedly enabled many small business owners to expand, hire, and raise wages. Without Congressional action to make it permanent, nine out of ten small businesses could face a heightened tax burden, jeopardizing jobs and economic stability across the nation.
The NFIB continues to advocate for small and independent business owners throughout the United States. More information can be found on their website or through NFIB’s social media channels.
Further details about the NFIB report for Nevada can be accessed via the provided links.
