Big Sky Times

A recent poll by the National Federation of Independent Business (NFIB) highlights significant support for maintaining the 20% Small Business Tax Deduction in the United States. The NFIB, an advocacy group for small businesses, shared findings that show broad bipartisan backing for small business support and the extension of the deduction in the tax code.

Ronda Wiggers, NFIB's state director for Montana, noted the importance of this tax deduction, particularly in Montana where small businesses represent 99.3% of all businesses and employ 66% of the private sector workforce. "Small business owners have used the deduction to create new jobs, create new benefits, buy new machinery, expand their business. It’s vital for the health of the nation’s economy that it be made a permanent part of the tax code,” she stated.

The poll reveals that over 80% of Americans believe federal support for small businesses is crucial, with strong agreement (93%) that making the deduction permanent should be a top priority for Congress. Concerns are widespread, with 95% worried about the impact if the deduction expires.

The survey further specifies that 83% of Americans deem federal support for small businesses important, and 79% desire increased backing. A majority, 62%, wish to retain the Small Business Tax Deduction, with only 20% in favor of letting it expire. Furthermore, 77% agree that the deduction helps level the playing field against larger corporations.

Established under the 2017 Tax Cuts and Jobs Act (TCJA), the deduction is set to expire at the end of 2025. The NFIB warns that without Congressional intervention, the expiration could lead to a substantial tax hike affecting nine out of ten small businesses, hindering their growth and capability to increase wages.

Stay updated on Montana's small business news via www.nfib.com or follow on X @NFIB_MT. For over 80 years, the NFIB has advocated for small and independent business owners across the United States.