Small Biz in Trouble: Tax Hike Looming

Inflation's been tough on Texas small businesses. Costs are skyrocketing, and owners are losing sleep over it. A recent report by the NFIB showed that supply costs jumped to the second biggest worry from twelfth in 2020. This is bad news for job creators who now face tough choices: raise prices, cut jobs, or shut down completely. To make matters worse, there's a big tax hike coming in 2025. In 2017, Congress passed the Tax Cuts and Jobs Act, which let small businesses reduce their taxes by 20%. This was supposed to help even the playing field with big corporations. But guess what? The corporate tax cuts are permanent, while the small business deduction isn't. It expires in 2025. This tax break has been good for communities. Small businesses used the savings to boost employee pay and hire more people. A recent analysis by EY and NFIB found that making this deduction permanent could create over 100,000 jobs each year for a decade, and even more after that. If Congress doesn't act, small businesses will be at a disadvantage compared to big corporations. They might have to freeze wages, cancel growth plans, or even lay off staff. Some may have to close their doors for good. That's why Texas small businesses want Congress to pass the Main Street Tax Certainty Act. This bill has bipartisan support and would make the small business deduction permanent. Small businesses need stability to thrive. The Main Street Tax Certainty Act would provide that certainty in the tax code. It's crucial because small businesses are the backbone of Texas' economy. When they do well, everyone benefits.