Sooner State News

The National Federation of Independent Business (NFIB) has released a report detailing the impact of the expiration of the 20% Small Business Tax Deduction on Oklahoma's businesses and economy. The report suggests significant financial consequences for the state's 382,000 small businesses if Congress does not act to make the deduction permanent.

The report emphasizes the disparity that would develop between small and large businesses. Without the deduction, the small business tax rate could escalate to 44.35%, whereas the tax rate for larger C-Corporations would remain at 25%.

If the deduction becomes permanent, Oklahoma could see the creation of 15,000 new jobs annually over the next ten years. Additionally, the state's GDP could increase by $707 million annually during the first decade and potentially more after 2035.

"Small businesses invest a great deal in communities throughout Oklahoma," said NFIB Oklahoma State Director Jerrod Shouse. "Congress must support small businesses by making the 20% Small Business Deduction permanent. If the tax deduction expires this year, the tax hike will hurt the small business community's ability to offer more opportunities and innovation."

The 20% Small Business Tax Deduction emerged as a provision of the Tax Cuts and Jobs Act of 2017. Failing to solidify this deduction permanently would increase the tax burden on nine out of ten small businesses across the country, possibly jeopardizing employment and economic stability.