WASHINGTON, D.C. (Dec. 19, 2019) — NFIB, the nation’s leading small business advocacy organization, issued the following statement on behalf of Acting President Brad Close marking two years since the Tax Cuts and Jobs Act was signed into law:
“Since the Small Business Deduction’s inclusion in the Tax Cuts and Jobs Act, America’s small business owners are doing exactly what they said they would do. Owners are hiring employees, increasing compensation, and investing in their businesses at historic levels. Over the last two years, we’ve also seen that uncertainty can be the killer of optimism. Now is the time for Congress to make the Small Business Deduction permanent, giving small businesses, which represent nearly half of the U.S. economy, more of what they need to continue to push the whole economy forward.”
NFIB surveyed small business owners after the passage of the Tax Cuts and Jobs Act and found that a majority of small business owners were optimistic about the law. Most of what owners forecasted about the impact of the law on their business operations came to fruition, with owners using tax savings to invest in their business:
- Twenty-seven percent of owners said they retained funds as higher earnings available to support growth.
- Twenty-six percent reported increasing employee compensation.
- Twenty-six percent reported increased business investment or expansion.
- Sixteen percent hired additional employees.
- Twenty percent paid down debt obligations.