Michael Smith Director | NFIB Wyoming
Michael Smith Director | NFIB Wyoming
The National Federation of Independent Business (NFIB) has released a report emphasizing the importance of the 20% Small Business Tax Deduction for Wyoming's businesses. According to the organization, which advocates for small businesses, the deduction, if made permanent, could significantly benefit the state's economy.
The report states that without the permanent establishment of this deduction, over 77,000 small businesses in Wyoming might face higher taxes. The potential expiration of this provision could lead to an economic slowdown and financial strain on these businesses and the broader U.S. economy.
It further highlights the difference in tax rates that would emerge between small businesses and larger corporations if the deduction is not extended. While C-Corporations in Wyoming would maintain a 21% tax rate, small businesses could see their rate rise to 39.6%.
The permanency of the deduction could level the playing field for small businesses, allowing them to compete more effectively with larger companies. The report projects that maintaining the deduction could yield Wyoming 3,000 new jobs a year over the next decade. Furthermore, the state is expected to experience an annual GDP increase of $169 million in the first ten years, and $350 million annually beyond 2035.
Michael Smith, NFIB Wyoming State Director, stated: “Wyoming small businesses create opportunities and strong local economies. Congress cannot allow the 20% Small Business Deduction to expire. The huge tax hike on small businesses will stifle growth and limit hiring. Congress must act quickly to protect small businesses and the communities they support.”
Established as part of the Tax Cuts and Jobs Act of 2017, the 20% Small Business Tax Deduction has helped many small business owners to hire employees and raise wages. Failure to make it permanent this year means that 90% of small businesses might face a heavier tax burden, risking job security and economic stability across the nation.
For more details on NFIB’s advocacy efforts and to view the Wyoming report, visit: https://www.nfib.com/wp-content/uploads/2025/04/NFIB-20-Small-Business-Deduction-Impact-WY.pdf
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