NFIB member and Owings small business owner John E. Kelly, Jr. has expressed concerns over the potential expiration of a significant tax deduction for small businesses. In an op-ed published in The Baltimore Sun, Kelly urged Congress to pass the Main Street Tax Certainty Act to make the Small Business Deduction permanent.
Kelly highlighted the financial challenges that small businesses might face if the main tax cut from the 2017 tax reform expires at the end of next year. He stated, “The truth is that small businesses are staring at a fiscal cliff. At the end of next year, the main tax cut of the 2017 tax reform is set to expire, which means that my taxes will rise dramatically."
He emphasized his fears about not being able to provide raises, improve benefits, or invest in new equipment if this happens. "Trump and Congress can’t let that happen,” he added.
Kelly also pointed out how beneficial the Small Business Deduction has been for his business operations over the past 32 years: “Bottom line: Thanks to Small Business Deduction, I have the confidence to keep hiring and investing."
However, he warned about the negative consequences if this deduction disappears or if Congress delays action until late in the year. "Nothing would be more harmful than letting the Small Business Deduction disappear at the end of the year," he wrote.
Kelly concluded by expressing concern over economic planning difficulties for small businesses due to uncertainty about future tax policies. He noted that such uncertainty could hinder job creation and wage growth in 2025.
For those interested in reading Kelly's full commentary, it is available on The Baltimore Sun's website.
Alerts Sign-up