In 2026, several key small-business tax cuts from the Tax Cuts and Jobs Act will expire, resulting in a huge tax hike on small business.

 

The Small Business Tax Alliance is endorsing a permanent Small Business Standard Deduction (SBSD)—something already circulating with key stakeholders in the Administration, and in both Chambers and parties on the Hill. ​

 

The SBSD will take the form of either a deduction or a credit available to eligible taxpayers to help more effectively offset the costs of individually tracking every potential deduction and credit currently available.

 

The SBSD will capitalize on existing Internal Revenue Service (IRS) data to determine the average deduction available to small businesses in each industry, thus uniquely tailoring it to the realities of each individual company.

 

This would ensure benefits are effectively scaled to meet the needs of each small business and would significantly reduce the burden of tax filing by streamlining returns. ​