Sunflower State News

The National Federation of Independent Business (NFIB), a key small business advocacy group, has released a report on the potential impact of a small business tax increase in Kansas. The report examines the implications of not making the 20% Small Business Tax Deduction permanent, noting that Kansas, home to over 266,000 small businesses, would face significant tax hikes if Congress fails to act.

The report emphasizes that without the deduction, small businesses may encounter much higher tax rates compared to larger corporations. Current projections show the C-Corp tax rate staying at 27.5% in Kansas, while small businesses could see their rate elevate to 45.18%.

The NFIB outlines potential benefits if the deduction is made permanent. These include maintaining a competitive small business tax rate, annual job growth of 12,000 positions in Kansas over the next decade, and GDP increments of $568 million yearly for the first 10 years, increasing to $1.17 billion annually after 2035.

Dan Murray, NFIB Kansas State Director, stated, "Kansas small businesses are facing rising costs and workforce struggles. If the 20% Small Business Deduction expires, the massive tax hike will further burden small business owners and limit their ability to grow. Congress must make the deduction permanent and level the playing field for Main Street."

The 20% Small Business Tax Deduction, part of the Tax Cuts and Jobs Act of 2017, has been vital for many small businesses. Without its permanence, many could face increased tax burdens, jeopardizing jobs and economic stability nationwide.

For further details on NFIB’s advocacy and to view Kansas' report, visit: https://www.nfib.com/wp-content/uploads/2025/04/NFIB-20-Small-Business-Deduction-Impact-KS.pdf