The inflation we have all experienced over the past several years keeps many Texas small-business owners awake at night. Local job creators recently ranked the cost of supplies and inventories as their second most-pressing problem — moving way up from its ranking as 12th in 2020 — in a report from the National Federation of Independent Business (NFIB).
This is a difficult economy. With increasing costs, small-business owners face three difficult choices: raise prices, cut jobs or close up shop for good. Unfortunately, there’s a massive tax hike scheduled to take effect in 2025 that would make things even worse for Texas businesses.
When Congress passed the Tax Cuts and Jobs Act of 2017, it included a provision allowing small businesses to reduce their taxable business income by 20%. It’s called the small-businesss deduction.
Congress enacted the small-business deduction to help…