The National Federation of Independent Affairs (NFIB), The main organization of small businesses in the country has published a new report describing the advantages that the 20% business deduction of small businesses will bring Oklahoma if it is made permanent. The report also highlights that the 382,000 small businesses in Oklahoma could be faced with much higher taxes if the congress does not make the 20% of small permanent companies this year. The report describes the serious consequences for small Oklahoma companies and the wider American economy that would result from the expiration of the offer, highlighting the potential economic slowdown and the increased financial pressure on local businesses.
The report also highlights a contrast hitting tax rates between small businesses and their largest business competitors if the deduction is not made permanent. In Oklahoma, the C-CORP tax rate would remain at 25% while the rate of small businesses would increase to 44.35%.
However, making the permanent deduction would lead to significant economic advantages, leaving the tax rate of small businesses on a level playground with its competitors. In addition, Oklahoma should obtain 15,000 new jobs per year over the next 10 years if the deduction remains in place, including an annual increase in GDP of $ 707 million for the first decade and $ 1.46 billion per year beyond 2035.
“Small businesses invest a lot in Oklahoma communities,” said the director of the state of Oklahoma Jerrod Shouse. “Congress must support small businesses by making 20% of small permanent businesses. If the tax deduction expires this year, the increase in taxes will harm the capacity of the community of small businesses to offer more opportunities and innovation. ”
The tax deduction of 20% of small businesses, a key provision of the 2017 law on tax reductions and jobs, allowed millions of small businesses to develop, hire employees and increase wages. If the congress does not act to make it permanent this year, nine small companies out of 10 will face a significantly higher tax burden, threatening jobs and economic stability at the national level.
For more information on NFIB’s advocacy efforts and to access the visit to the Oklahoma report: https://www.nfib.com/wp-content/uploads/2025/04/nfib-20-small-business-deduction-impact-ok.pdf