Cornhusker State News

The National Federation of Independent Business (NFIB) has released a new report detailing the potential impact of the 20% Small Business Tax Deduction on Nebraska. The report emphasizes the serious consequences for over 188,000 small businesses in the state if the deduction is not made permanent, including significantly higher taxes.

According to the NFIB, Nebraska could face higher tax rates for small businesses compared to their larger corporate counterparts if the deduction expires. The C-Corp tax rate would be at 26.2% while small business taxes could rise to 44.8%.

The report advocates for Congress to make the 20% Small Business Tax Deduction permanent, projecting economic benefits if the deduction continues. This includes the creation of 9,000 new jobs annually for the next decade in Nebraska and an annual GDP boost of $414 million for the first ten years, with $855 million per year beyond 2035.

NFIB Nebraska State Director Ryan McIntosh stated, “Congress must not let the 20% Small Business Deduction expire. A massive tax hike on small businesses will stifle growth and hiring in Nebraska. The deduction is set to expire this year, and lawmakers must make the deduction permanent to protect small businesses.”

Initially a provision of the Tax Cuts and Jobs Act of 2017, the deduction has allowed small businesses to expand and hire more employees. The NFIB warns that without action from Congress, nine out of ten small businesses will face a heavier tax burden, jeopardizing jobs and economic stability across the country.

For further details on NFIB’s advocacy and to view Nebraska's report, visit: https://www.nfib.com/wp-content/uploads/2025/04/NFIB-20-Small-Business-Deduction-Impact-NE.pdf