NFIB: Budget Provision Extending the Standard Deduction Would Help VA’s Small Businesses

NFIB State Director Julia Hammond today applauded the General Assembly for passing state budget proposals that would ease some of the financial pressure on the commonwealth’s small businesses.

“Small business owners already face enough economic uncertainty,” Hammond said. “The House and Senate versions of the budget are different, but both chambers agreed that extending the standard education will provide much-needed tax relief, allowing them to reinvest in their businesses and communities.”

The standard deduction—a key tax break that determines how much income is tax-free—is currently $17,000 for couples and $8,500 for individuals. Without legislative action, it could revert to 2018 levels, costing Virginians an estimated $600 more a year. Most small businesses in Virginia are organized as pass-through entities, meaning their revenue passes through the business to the owner, who pays taxes at the individual rate.

“Small business is the foundation of Virginia’s economy,” Hammond said. “Keeping taxes predictable and manageable is key to their success. We applaud the General Assembly for considering the impact that extending the standard deduction would have on small business owners and other taxpayers.”