Big Sky Times

The National Federation of Independent Business (NFIB) has unveiled a report highlighting the potential benefits and drawbacks of the 20% Small Business Tax Deduction in Montana. The report underscores the advantages of making this deduction permanent for over 136,000 small businesses in the state, contrasting it with the financial challenges they could face if Congress fails to act.

According to the NFIB, if the deduction is not made permanent, the small business tax rate in Montana could increase to 45.5%, while the C-Corp tax rate would remain at 27.75%. Leaving the deduction in place would allow the small business rate to stay competitive.

Furthermore, the report projects economic gains if the deduction continues, including the creation of 5,000 new jobs annually and a $244 million increase in Montana's GDP per year for the next decade. Beyond 2035, the GDP increase is expected to reach $503 million annually.

NFIB Montana State Director Ronda Wiggers commented, “Small businesses don’t just create jobs—they create opportunity, innovation, and strong local economies. If Congress allows the 20% Small Business Deduction to expire, a massive tax hike on small businesses will take effect, stifling growth, putting the brakes on hiring, and endangering countless small businesses.”

The 20% Small Business Tax Deduction was introduced as part of the Tax Cuts and Jobs Act of 2017. NFIB warns that without action from Congress, nine out of ten small businesses could face higher tax burdens, jeopardizing jobs and economic stability across the country.

For further details, the full report is available on NFIB's website, providing insights into the potential impact on Montana's economy.

###

NFIB emphasizes its long-standing commitment to advocating for small and independent businesses across the United States, maintaining a nonprofit, nonpartisan approach.