Beehive State News

The National Federation of Independent Business (NFIB) has published a report emphasizing the importance of the 20% Small Business Tax Deduction for Utah's small businesses. The deduction, established under the Tax Cuts and Jobs Act of 2017, is nearing expiration, and the NFIB warns of significant tax increases if it is not made permanent.

According to the report, Utah's 352,000 small businesses could face substantial tax hikes, potentially leading to an economic slowdown and financial strain on local enterprises. The report highlights a disparity in tax rates, noting that, without the deduction, the small business tax rate in Utah would increase to 44.25%, while the C-Corp tax rate will stay at 25.55%.

Casey Hill, NFIB Utah State Director, commented on the potential impact, stating, "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 report suggests that if the deduction is made permanent, Utah could see the creation of 16,000 new jobs annually over the next decade and an increase in annual GDP by $816 million for the first ten years, with projections of $1.69 billion per year after 2035.

NFIB remains a leading advocate for small businesses, dedicated for over 80 years to supporting independent business owners across the United States. More details are available at their website and social media.