Mountain State Times

The West Virginia News recently published an op-ed by Kyle Lindsey, the owner of Bob’s American Store & Café and a member of the National Federation of Independent Business. In his piece, Lindsey emphasizes the significance of the 20% Small Business Deduction and urges Congress to ensure its permanence before its impending expiration next year.

Lindsey outlines the myriad considerations that come with starting a small business, reflecting on his own experiences. He and a colleague turned an idea conceived during their time in the Army into reality by establishing Bob’s American Store & Café in Shady Spring. However, they were unprepared for the potential impact of a "massive tax hike" if the Small Business Deduction is not extended.

He highlights the deduction as a central component of the 2017 tax cuts, noting its role in leveling the playing field for small enterprises against larger corporations, which secured a permanent rate cut in the same legislation. Lindsey argues that eliminating this deduction could adversely affect small businesses like his, pointing out that its benefits have facilitated affordable pricing, team expansion, and fair wages.

Lindsey states, “Lord knows, big businesses have a lot of advantages. In the 2017 law, corporations got a rate cut from 35% to 21%. But while the corporate relief is permanent, the Small Business Deduction is temporary. If it disappears, stores like mine will suffer."

The op-ed calls for immediate congressional action to maintain the deduction, emphasizing its importance to the sustainability and growth of small businesses. Lindsey warns, "The longer they wait, the more my new small business will start to pull back, in preparation for the worst."

The 20% Small Business Deduction, also known as Section 199A, currently allows small businesses classified as pass-throughs to deduct a portion of their income. Set to expire in 2025, it was established under the 2017 tax law to align small businesses' tax rates with those of larger corporations. An NFIB survey indicates that 91% of its members support permanently extending the provisions of the tax law, with nearly half of small business owners expressing concern over the uncertainty of expiring tax policies affecting their planning.