The National Federation of Independent Business (NFIB) has introduced two digital tools aimed at helping small business owners, policymakers, and the public in Massachusetts understand the impact of the 20% Small Business Tax Deduction. These tools are designed to highlight what could happen if Congress does not make this deduction permanent.
The first tool is an interactive map that allows users to see how extending the Small Business Deduction might influence job creation and GDP growth across Massachusetts’ congressional districts. The second tool is a tax calculator that provides personalized estimates for small business owners on potential federal income tax increases in 2026 if the deduction expires.
“These new tools give small business owners and elected leaders in Massachusetts real data about the economic stakes,” said Christopher Carlozzi, state director for NFIB in Massachusetts. “If Congress fails to act, millions of small businesses across the country—including right here in Massachusetts—will face a massive tax hike. That means fewer jobs, less investment, and slower growth for our communities. We urge Congress to make the 20% Small Business Tax Deduction permanent.”
Carlozzi also expressed support for recent legislative actions: “We also applaud the United States House of Representatives for passing the tax cuts package this morning. This bill is one of the most pro-small business pieces of legislation in recent history, and Congress has a historic opportunity to provide over 33 million small business owners with permanent tax relief.”
According to NFIB’s data, extending the deduction could result in an increase of 52,239 jobs and $4.147 billion in GDP for Massachusetts over ten years. The district-level data helps lawmakers assess potential gains or losses based on whether the deduction becomes permanent.
The tax calculator can assist individual small business owners by projecting their potential tax increases if the deduction ends. For instance, a small business owner with a personal income of $75,000 and qualified business income of $150,000 might face a tax increase exceeding $13,000 depending on their financial situation.
For more information about these tools and NFIB’s efforts to support Massachusetts’ small businesses, visit www.SmallBusinessDeduction.com.
