The National Federation of Independent Business (NFIB) has introduced two digital tools aimed at illustrating the potential economic impact of the 20% Small Business Tax Deduction in Rhode Island. The tools are designed to aid small business owners, policymakers, and the public in understanding what is at stake if Congress does not make this deduction permanent.
One of the tools is an interactive map that demonstrates how extending the Small Business Deduction could stimulate job creation and GDP growth across Rhode Island’s congressional districts. Additionally, NFIB has launched a tax calculator to provide personalized estimates for small business owners regarding potential federal income tax increases in 2026 if the deduction expires.
“These tools provide small business owners and elected leaders in Rhode Island real data about what is at stake,” said Christopher Carlozzi, state director for NFIB in Rhode Island. “If Congress fails to act, millions of small businesses across the country—including right here in Rhode Island—will face a massive tax hike. That means fewer jobs, less investment, and slower growth for our communities. We urge Congress to make the 20% Small Business Tax Deduction permanent.”
Carlozzi also commended the United States House of Representatives for passing a recent tax cuts package: “This legislation is one of the most pro-small business bills in recent history, and Congress has a historic opportunity to provide over 33 million small business owners with permanent tax relief.”
According to NFIB’s interactive map, extending the deduction could result in an increase of 8,783 jobs and $515 million in GDP over ten years within Rhode Island. This district-level data provides lawmakers with insights into how local businesses might benefit or suffer depending on legislative actions.
The tax calculator assists individual small business owners by projecting their potential tax increase if the deduction ends. For instance, a Rhode Island small business owner with a personal income of $75,000 and qualified business income of $150,000 might face a tax increase exceeding $13,000 based on their financial profile.
For more information about these tools and NFIB’s efforts to support Rhode Island’s small businesses, visit www.SmallBusinessDeduction.com.
NFIB has been advocating for America’s small businesses since its founding in 1943 as a nonprofit organization dedicated exclusively to independent enterprises.
