By Fred Pace, HD Media
ST. ALBANS, W.Va. — Michael Ervin says his business’s bottom line would be impacted by the expiration of a small business deduction which is part of the Tax Cuts and Jobs Act (TCJA) and is set to expire in 2025.
“This provision has allowed me to deduct up to 20% of my business income, which has let me invest in my business, my employees and my community,” said Ervin, who owns the Coal River Coffee Company in St. Albans.
Ervin is a member of the National Federation of Independent Business (NFIB), so he went to Washington on April 11 to testify about the deduction before the U.S. House Ways and Means Committee.
“After the passage of the TCJA, limited liability corporations and other passthrough businesses like mine were able to benefit from the new deduction, also known as the 199(a) deduction,” he said.
Ervin said Congress must act soon to prevent what will be the largest tax hike in history on workers, families, farmers and small businesses.
“In less than two years our business will be facing a significant tax hike unless Congress acts to extend and make permanent the small business deduction,” Ervin said in his testimony. “Not only will my 20% small business deduction go away, but my marginal tax rates will increase if Congress fails to act.”
