U.S. Representative Mike Kelly, who represents Pennsylvania’s 16th Congressional District, participated in the National Federation of Independent Business’s (NFIB) Small Business Rundown podcast to discuss the ongoing debate surrounding the 20% Small Business Deduction. Kelly’s family has owned an automobile business in Butler since 1953.
Kelly, a co-sponsor of the Main Street Tax Certainty Act, advocates for permanently establishing the 20% Small Business Deduction. He urged small business owners to maintain active communication with their congressional representatives:
“What I would just ask all the [NFIB] members, please be active members. And what I mean by that is not just signing up but contacting the person who represents you. And it doesn’t matter what side of the aisle they’re on. I couldn’t care less about that. It’s about being on the right side of the issue and understanding that we’re not looking for a handout, we’re not looking for a break. We’re looking for an opportunity to reinvest our money the right way, that way we can have more success. And by being more successful, you’ll be making contributions to the incredible operation that we call America.”
Proponents argue that making the deduction permanent would align the small business tax rate with competitors, potentially yielding significant economic gains. Projections suggest Pennsylvania could experience an annual increase of 51,000 jobs over the next decade if the deduction remains, along with a GDP rise of $2.79 billion annually in the first ten years and $5.75 billion a year after 2035.
