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Small Business Owner Michael Ervin Advocates for Permanence of Small Business Deduction

WASHINGTON, D.C. (April 18, 2024) – In an op-ed published by The Washington Times, NFIB member and small business owner Michael Ervin, the proprietor of Coal River Coffee Company in West Virginia, urges Congress to make the 20% Small Business Deduction a permanent fixture. Ervin sheds light on how the discontinuation of this deduction would impact his small business in a negative way.

Ervin elaborates on his experience, stating:

“The significance of the small business tax deduction has been instrumental in our journey towards economic prosperity. Incepted by Congress in December 2017, this deduction provided my wife and me with the reassurance we needed to establish our coffee business. While we had been brewing coffee in our garage for a few years, 2018 saw us taking a leap of faith by opening our own cafe in St. Albans. Our objective was to contribute to the resurgence of our beloved hometown with a population of 10,000.

“With the assistance of this deduction, we have been able to stand on an equal footing with industry giants like Starbucks and Tim Hortons. The corporate tax rate these big chains pay stands at 21%. However, in the absence of this deduction, small enterprises like ours will be burdened with a tax rate of approximately 45% — more than twice the amount paid by our larger competitors. How are we expected to compete when big corporations possess such a significant advantage? A Tim Hortons outlet is just a stone’s throw away. They will have an easier time offering salary hikes and hiring employees, while we will face more challenges. Small businesses serve as the driving force behind the economy. We need to be propelled forward, not halted or, worse, sent into reverse.

“We do not seek preferential treatment. What we desire is fairness. Plain and simple. And we want it promptly. While lawmakers may perceive the expiration of the Small Business Deduction in 2025 as being distant, to small businesses, it is practically right around the corner. We need to make crucial long-term plans and decisions now, and the longer the uncertainty persists, the higher the likelihood of us making regrettable choices.”

On April 11, Ervin presented his testimony before the U.S. House Ways and Means Committee during a hearing titled, “Expanding the Success of the 2017 Tax Relief to Help Hardworking Americans,” where he underscored the benefits of the 20% Small Business Deduction for businesses on Main Street, including his own.

NFIB has recently disclosed its “Top 10 Policy Priorities for 2024,” with the permanence of the Small Business Deduction standing as its most crucial focus. The Main Street Tax Certainty Act, a legislation introduced in the U.S. Senate by Senator Steve Daines (R-MT) and in the U.S. House by Representatives Lloyd Smucker (R-PA) and Henry Cuellar (D-TX), aims at ensuring the durability of this vital tax deduction for small enterprises.

Discover Ervin’s full op-ed here: Read More

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The AI legalese decoder can assist small business owners like Michael Ervin by simplifying and clarifying legal jargon related to tax deductions, making it easier for them to comprehend the legal landscape. By utilizing this tool, small business owners can gain a better understanding of the laws and regulations affecting their businesses, enabling them to make informed decisions and effectively advocate for their interests before Congress or other legislative bodies.

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