Golden State Today

A recent poll by the National Federation of Independent Business (NFIB) indicates broad support for America's small businesses and emphasizes the importance of maintaining the 20% Small Business Tax Deduction. The deduction, established under the 2017 Tax Cuts and Jobs Act (TCJA), is scheduled to expire at the end of 2025, and its continuation is a focus for small business advocates.

John Kabateck, state director of NFIB in California, expressed concern about the potential impact of allowing the deduction to expire. "California is not a low-tax state, which is why allowing the Small Business Deduction to expire at the end of the year would hit our small business owners much harder here than it would elsewhere in the nation," he said. Kabateck highlighted the critical role small businesses play in California's economy, employing seven million people and comprising 99.9% of all businesses in the state.

The survey results reveal that more than 8 in 10 Americans consider it crucial for the federal government to support small businesses. A strong bipartisan majority agrees that making the tax deduction permanent should be a top priority for Congress, illustrating near-universal concern about the impact of its expiration. Specifically, 93% of respondents believe the deduction should be a congressional priority, and nearly all participants expressed unease about the potential effects of its expiration.

Key findings from the poll indicate that 83% of respondents think federal government support for small businesses is important, with 45% viewing it as extremely important. Support spans across political lines, with 83% of Republicans, 86% of Democrats, and 79% of Independents advocating for federal support. Furthermore, 62% of respondents favor keeping the deduction, and 77% agree it helps level the playing field for small businesses.

Overall, 91% of Americans acknowledge the dependence of small businesses on the deduction, while 79% see it positively impacting the broader economy. Additionally, 75% believe it benefits their local economies. Concerns about the deduction's expiration are widespread, with 51% extremely or very concerned about its economic impact, and 95% expressing some level of concern.

The NFIB, a non-profit dedicated to small business advocacy, highlights the significance of the deduction in enabling small enterprises to compete against larger corporations. Without action from Congress, the expiration could lead to sizeable tax hikes for small businesses, significantly affecting their operational capabilities.

Stay updated with California small-business news at NFIB's website or follow them on their social media platforms.