NFIB Statement on IRS Rule Clarifying Small Business Pass-Through Deduction

NFIB Statement on IRS Rule Clarifying Small Business Pass-Through Deduction
Washington, D.C. (August 10, 2018)—NFIB, the nation’s leading small business advocacy organization, welcomed proposed rules released this week by the Treasury Department that are intended to clarify key elements of the new small business pass-through deduction in section 199A of the tax code: “We’re pleased that this week’s proposed rule...

Washington, D.C. (August 10, 2018)—NFIB, the nation’s leading small business advocacy organization, welcomed proposed rules released this week by the Treasury Department that are intended to clarify key elements of the new small business pass-through deduction in section 199A of the tax code:

We’re pleased that this week’s proposed rule comprehensively addresses questions related to the small business pass-through deduction, particularly with respect to definitions and calculations,” said Brad Close, NFIB Senior Vice President of Public Policy and Advocacy. “Given how crucial this deduction is to small businesses, which account for approximately half the nation’s jobs and GDP, we will review the rule carefully and submit detailed comments in due course. Our initial review indicates small businesses will realize a significant savings on their tax bill thanks to this deduction, which will further boost employment and wages.

As reflected in a May survey conducted by NFIB, the clear majority of small businesses are optimistic about the effects of the law:

  • 87 percent believe the new tax law will have a positive effect on the economy
  • 75 percent believe it will positively affect their business
  • 70 percent anticipate the new tax law will positively affect their personal tax situation
Source: www.nfib.com