Tariffs Threaten New Mexico Businesses, Nonprofits

Recent reports emphasize the critical impact of tax policy decisions on small businesses across the U.S., with a particular focus on the potential expiration of the 20% Small Business Tax Deduction. Advocacy groups warn that if Congress fails to make this deduction permanent, small businesses in states like Kentucky and Nebraska could face sharply higher tax rates compared to larger corporations, leading to economic strain, fewer jobs, and slowed growth. In Kentucky, expiration of the deduction could raise small business tax rates to 43.6%, while in Nebraska, rates could climb to 44.8%, both significantly above corporate rates. Projections suggest that maintaining the deduction could support the creation of thousands of jobs and boost GDP in these states. Overall, small businesses are highlighted as major contributors to the U.S. economy, employing nearly half of all private sector workers and generating substantial GDP, but they remain vulnerable to policy uncertainty and rising costs. Tax relief and policy stability are widely viewed as crucial to helping small businesses thrive and continue driving economic growth.