Show-Me State Times

The National Federation of Independent Business (NFIB), a prominent small business advocacy group in Missouri, has introduced two digital tools aimed at illustrating the economic impact of the 20% Small Business Tax Deduction. These resources are designed to assist small business owners, policymakers, and the public in understanding the potential consequences if Congress does not make this deduction permanent.

The first tool is an interactive map that provides insights into how extending the Small Business Deduction could foster job creation and GDP growth across every congressional district in Missouri. Additionally, NFIB has launched a tax calculator for small business owners in Missouri to estimate their possible federal income tax increases if the deduction expires in 2026.

Brad Jones, NFIB Missouri State Director, emphasized the importance of these tools: “These new tools are a valuable resource for both small business owners and elected officials to see the economic impact of making the Small Business Deduction permanent.” He warned that without Congressional action, many small businesses nationwide—and specifically in Missouri—could face significant tax hikes leading to fewer jobs and reduced investment.

Data from NFIB’s interactive map suggests that extending the deduction could result in an increase of 44,986 jobs and $2.314 billion in GDP for Missouri over ten years. This district-level data allows lawmakers and local leaders to assess potential gains or losses for small businesses within their communities based on whether the tax deduction is made permanent.

The tax calculator serves as a tool for individual small business owners to project potential tax increases if Congress does not extend the deduction. For instance, a Missouri-based owner with a personal income of $75,000 and qualified business income of $150,000 might experience a tax hike exceeding $13,000 depending on their financial situation.

For further information on these tools and NFIB's efforts to support Missouri’s small businesses, visit www.SmallBusinessDeduction.com.