Rushmore State News

Argus Leader recently featured an op-ed by Steve Flanagan, the owner of Blue Light Investigations in Sioux Falls, South Dakota. Flanagan, also a member of the National Federation of Independent Business (NFIB), is calling on Congress to permanently extend the small business deduction, a crucial component of the Tax Cuts and Jobs Act of 2017 set to expire next year.

Flanagan states, "Essentially none of our politicians are talking about the fact that small businesses like mine are about to face one of the biggest tax hikes in history. If they don’t take action, we’re about to be devastated, and so will the communities we anchor."

He highlights the looming tax increase that will impact small businesses after the temporary provisions of the 2017 tax reform expire. "This massive tax hike will take effect next year, which in the world of small business, is basically tomorrow," Flanagan writes. The small business deduction, which allows business owners to deduct 20% of their income, is at the heart of Flanagan's argument for equitable taxation. He notes the contrast with large corporations, which received permanent tax relief in 2017.

Flanagan emphasizes the difficult position this potential tax hike places on small business owners, "I don’t want to make these tough decisions. No small business owner does. But a tax hike forces our hands. After getting my business off to such a great start, a tax hike would suddenly hold us back. Not only is that wrong, but it’s deeply unfair."

The future of the small business deduction remains uncertain as business owners look to lawmakers for a resolution.