Hawkeye Reporter

NFIB Iowa member Lana Pol recently testified at a House Ways & Means Committee field hearing held at the Iowa State Fairgrounds. The focus was on pro-growth and pro-worker tax policy in the American Midwest. The discussion centered around the small business deduction, a key component of the Tax Cuts and Jobs Act of 2017, which is set to expire next year.

Pol represented Iowa's small business community, emphasizing the importance of making this deduction permanent. "I’d like to thank the House Ways & Means Committee for allowing me the opportunity to testify on behalf of Iowa small businesses," said NFIB Small Business Member Lana Pol. She highlighted that small businesses form the backbone of the economy and stressed that Congress created this deduction to level the playing field with large corporations.

She warned of a significant tax increase if Congress does not act soon, which could impact small businesses adversely. Pol urged Congress to support the Main Street Tax Certainty Act, stating, "Unless Congress acts now, small businesses will see a significant tax hike at a time when they can least afford it."

The 20% Small Business Deduction under Section 199A allows pass-through entities such as S corporations, LLCs, sole proprietorships, or partnerships to deduct up to 20% of qualified business income. This provision is scheduled to expire in 2025. With ninety percent of American small businesses structured as pass-through entities, making this deduction permanent is crucial for them.

The Main Street Tax Certainty Act aims to ensure that this deduction remains available indefinitely and has become a legislative priority for many small businesses across the nation.