News Summary
Chris Rhodes, a small business owner from Shreveport, is set to advocate for the permanent renewal of the Main Street Certainty Act tax deduction in Washington, D.C. This crucial tax benefit, which provides a 20% deduction to small businesses, is set to expire at the end of the year, potentially affecting millions of business owners across the country. Rhodes emphasizes the importance of small businesses for economic growth, with projections showing significant job creation in Louisiana and Texas if the deduction is renewed.
Shreveport Small Business Owner Advocates for Permanent Tax Deduction in Washington, D.C.
Shreveport business owner, Chris Rhodes, will represent Louisiana’s small business community in Washington, D.C., to advocate for the permanent renewal of the Main Street Certainty Act tax deduction. The crucial tax deduction is set to expire at the end of this year, impacting over 30 million small business owners across the nation.
The Main Street Certainty Act, which was enacted in 2017, provides a temporary 20% tax deduction to small businesses, allowing them to compete more effectively against larger corporations. If Congress does not extend this provision, small business owners will face a significant tax increase beginning in 2026.
Rhodes strongly believes that small businesses are essential to the U.S. economy’s recovery and growth. He stated that America was built on the foundation of small businesses rather than large retail chains. The tax deduction currently allows small businesses to reduce their overall tax liability significantly, enabling them to invest in their operations by reinvesting the savings into expansion, new equipment, or hiring new employees.
A recent report from **Ernst & Young** projects that if the deduction is renewed, Louisiana could see nearly 18,000 new jobs created and experience a $940 million increase in GDP over the next decade. In a more expansive view, Texas could benefit even more, potentially adding over 140,000 jobs and contributing an estimated $6 billion to its GDP with the extension of the deduction.
Supporting this initiative, Texas Representative Nathaniel Moran, who is a member of the House Ways and Means Committee, has co-sponsored the legislation aimed at extending the tax deduction. He has highlighted the potential tax increase for small businesses, stating that without the deduction, their effective tax rate could spike from the current 21% to as high as 43%. This would create uncertainty in business planning, making it difficult for small business owners to strategize for the future.
The Ernst & Young report also contained alarming predictions regarding job losses: without an extension of the tax deduction, the United States could face a loss of up to 1.2 million jobs every year throughout the next decade. The stakes for small businesses in Louisiana and beyond have never been higher as the deadline for renewal rapidly approaches.
The advocacy efforts by Rhodes and others represent a concerted effort to ensure small businesses can continue to thrive and contribute to the economy. As this situation develops, the impact of the Main Street Certainty Act on local and national economies will be closely watched by business owners and policymakers alike.
FAQ
What is the Main Street Certainty Act?
The Main Street Certainty Act is legislation that provides small business owners with a 20% tax deduction to help them compete with larger corporations. It was enacted in 2017 and is set to expire at the end of this year.
What will happen if the tax deduction is not extended?
If the deduction is not extended, over 30 million small business owners in the U.S. will face a tax increase of 20% starting in 2026.
How does this affect job growth?
The extension of the deduction could lead to significant job creation. For example, Louisiana could gain nearly 18,000 jobs, while Texas could see over 140,000 jobs created.
What is at stake if the tax deduction is not renewed?
If the deduction is not renewed, the U.S. may lose up to 1.2 million jobs annually over the next decade, according to an Ernst & Young report.
Key Features of the Main Street Certainty Act
| Feature | Details |
|---|---|
| Enactment Year | 2017 |
| Tax Deduction | 20% for small businesses |
| Expiration Date | End of 2023 |
| Projected Job Gains (LA) | ~18,000 jobs |
| Projected GDP Increase (LA) | $940 million |
| Projected Job Gains (TX) | ~140,000 jobs |
| Projected GDP Increase (TX) | $6 billion |
| Potential Job Losses Without Renewal | ~1.2 million jobs annually |
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Additional Resources
- KTBS: Shreveport Small Business Owner Advocates for Tax Relief
- Wikipedia: Small Business
- Shreveport-Bossier Advocate: One Stop Shop to Open Your Business
- Google Search: Small Business Tax Deduction
- NOLA: Louisiana Small Businesses Spotlight Awards
- Encyclopedia Britannica: Taxation
- The Advocate: Small Business Development Center Names New Director
- Google News: Small Business News
Author: STAFF HERE SHREVEPORT WRITER
The SHREVEPORT STAFF WRITER represents the experienced team at HEREShreveport.com, your go-to source for actionable local news and information in Shreveport, Caddo Parish, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Mudbug Madness Festival, Red River Revel Arts Festival, and Independence Bowl. Our coverage extends to key organizations like the Shreveport-Bossier Chamber of Commerce and Shreveport Regional Arts Council, plus leading businesses in gaming, healthcare, and energy that power the local economy such as Horseshoe Casino, Ochsner LSU Health, and Atmos Energy. As part of the broader HERE network, including HEREBatonRouge.com and HERENewOrleans.com, we provide comprehensive, credible insights into Louisiana's dynamic landscape.
