A car stops for a couple crossing Main Street as they head to the Mesquite Farmers Market on Saturday, June 1, 2024, in downtown Mesquite. Jeff Burdett of the National Federation of Independent Business says tax relief for small business is due to expire soon. If Congress lets that happen it could be bad news for Main Street businesses in Texas.The inflation we have all experienced over the past several years keeps many Texas small-business owners awake at night.
This is a difficult economy. With increasing costs, small-business owners face three difficult choices: raise prices, cut jobs or close up shop for good. Unfortunately, there’s a massive tax hike scheduled to take effect in 2025 that would make things even worse for Texas businesses.When Congress passed the Tax Cuts and Jobs Act of 2017, it included a provision allowing small businesses to reduce their taxable business income by 20%. It’s called the small-businesss deduction.
A tax increase of this magnitude would force small businesses to make drastic cutbacks. Faced with a larger tax bill, small businesses would have to hold the line on wages and benefits, halt growth plans and possibly cut jobs. Given the tremendous financial pressure they’re already under, some may be forced to close their doors for good.
That’s why Texas small businesses are asking Congress to pass the Main Street Tax Certainty Act. This bipartisan bill would make the small-business deduction permanent.Small businesses need stability to succeed. The Main Street Tax Certainty Act has bipartisan support in Congress and among the Texas Congressional delegation because it creates needed certainty in the tax code for small businesses.That’s important because small businesses are the foundation of Texas’ economy.