The National Federation of Independent Business (NFIB) says a new poll released by the organization today (April 8) shows broad, bipartisan support for America’s small businesses – and for keeping the 20% Small Business Tax Deduction in the tax code.
The 20% Small Business Deduction was established under the 2017 Tax Cuts and Jobs Act (TCJA) to level the playing field between small businesses and their large, corporate competitors. Without action, the tax deduction is set to expire at the end of 2025.
According to the NFIB survey, more than eight in 10 Americans feel it is important for the federal government to support small businesses, including strong majorities of Republicans, Democrats, and Independents. That support translates to strong agreement (93%) that making the 20% Small Business Tax Deduction permanent should be a top priority for Congress, with nearly all Americans (95%) expressing some concern about the impact an expiration of the deduction would have.
“This research reinforces the high stakes of this Congressional tax debate,” NFIB president Brad Close said in a release. “Americans recognize the immense value of the 20% Small Business Tax Deduction and are concerned about the devastating consequences should Congress fail to act. NFIB strongly urges Congress to make the tax deduction permanent and deliver the certainty that small businesses need to continue to grow, hire, and give back to their communities.”
“In Iowa, we know that small businesses drive innovation and job creation,” NFIB Iowa state director Matt Everson said. “Congress must prioritize the 20% Small Business Tax Deduction to ensure our small businesses have the support they need.”
Key findings from the poll:
- 83% of respondents said that it was important for the federal government to support small businesses, and 45% believed that supporting small businesses was extremely important.
- More than two-thirds of Republicans (83%), Democrats (86%) and Independents (79%) said that federal support for small businesses was important.
- Nearly eight in 10 (79%) want to see more support for small businesses.
- 62% of respondents want to keep the Small Business Tax Deduction in the tax code, while only one in five supports letting it expire.
- 77% agree that the Small Business Tax Deduction helps level the playing field for small businesses by keeping their tax rates closer to those of larger corporations.
- 91% of respondents agree that small businesses rely on the Small Business Tax Deduction.
- 79% believe the Small Business Tax Deduction has a positive impact on the economy overall.
- 75% believe the Small Business Tax Deduction has a positive impact on the local economy where they live.
- 51% of respondents are extremely or very concerned about the impact on the economy if the Small Business Tax Deduction expires. Nearly all Americans (95%) express some concern about the impact an expiration of the deduction would have.
