Jeff Brabant, Vice President of Federal Government Relations at the National Federation of Independent Business (NFIB), recently participated in a radio interview with WRNN Hot Talk 99.5 in Myrtle Beach. The discussion focused on the implications of the 20% Small Business Deduction on the local economy in South Carolina.
During the interview with Joe Catenacci, Brabant highlighted, “Small business owners have a lot to worry about right now with rising uncertainty that their taxes might go up next year. It’s something they shouldn’t have to worry about.” His comments come amid growing concerns about potential tax increases for small business owners.
As outlined in a recent NFIB report, there are currently 507,000 small businesses in South Carolina that may face substantial tax hikes if Congress fails to make permanent the 20% Small Business Tax Deduction this year. The report also stresses the disparity in tax rates that could arise between small businesses and large corporations if the deduction is not extended. Without the continuation of the deduction, South Carolina’s small business tax rate could soar to 45.8%, while the C-Corp tax rate would remain at 26%.
Brabant emphasized the potential economic advantages of making the deduction permanent. Such a move would help maintain competitive tax rates for small businesses and is expected to create approximately 18,000 new jobs annually over the next decade. Additionally, sustained economic benefits could include an annual GDP growth of $838 million for the first ten years, increasing to $1.73 billion per year after 2035.
The conversation aims to raise awareness about the possible ramifications for small businesses if legislative action is not taken to secure the deduction’s permanence.
Listen to Brabant’s full interview below.
