Hawkeye Reporter

A recent poll by the National Federation of Independent Business (NFIB), Iowa’s leading small business advocacy group, highlights considerable bipartisan backing for the 20% Small Business Tax Deduction. The survey reveals widespread public consensus on the importance of federal support to small businesses, underscoring the current congressional debate on tax policy.

The findings indicate that more than 80% of Americans believe federal support for small businesses is crucial, with strong agreement across party lines. Specifically, 83% of Republicans, 86% of Democrats, and 79% of Independents consider such support important. "This research reinforces the high stakes of this Congressional tax debate," stated NFIB President Brad Close. "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 deduction permanent."

The survey highlights that 93% of respondents think making the 20% deduction permanent should be a legislative priority. A significant 95% of Americans expressed concern over the potential expiration of the deduction. "In Iowa, we know that small businesses drive innovation and job creation," commented NFIB Iowa State Director Matt Everson. "Congress must prioritize the 20% Small Business Tax Deduction to ensure our small businesses have the support they need."

Notable survey results include 79% of respondents favoring enhanced support for small businesses, and 62% desiring the retention of the deduction in the tax code. Additionally, 77% agree the deduction levels the playing field for smaller enterprises compared to larger corporations.

The 20% deduction, a part of the 2017 Tax Cuts and Jobs Act (TCJA), is set to expire at the close of 2025. Its expiration could result in a significant tax increase for 9 out of 10 small businesses, hampering their capacities to expand and raise employee wages. Survey results show that 91% assert small businesses' reliance on the deduction, while 79% and 75% report positive impacts on the national and local economies, respectively.

The NFIB-authorized poll was carried out by Seven Letter Insight, sampling 2,000 American voters, including 500 small business owners, conducted from March 21 to March 25, 2025. The findings present a snapshot with a margin of error of plus or minus 2%.