Aloha State News

A recent poll from the National Federation of Independent Business (NFIB), a leading small business advocacy group, highlights substantial bipartisan support for the 20% Small Business Tax Deduction, underscoring its significance to the U.S. economy. This deduction, tied to the 2017 Tax Cuts and Jobs Act, faces expiration at the end of 2025, prompting urgent calls for legislative action.

Michael Iosua, NFIB's state director for Hawaii, emphasized the deduction's special importance within the state. "Preventing the Small Business Deduction from expiring at the end of the year is especially important for Hawaii, where small businesses account for 99.3% of all businesses in the state and employ more than half the private-sector workforce," Iosua stated. He added that the deduction has been crucial for job creation, business expansion, and economic vitality.

The poll reveals that over eight in ten Americans regard federal support for small businesses as crucial, with support spanning Republicans, Democrats, and Independents. A significant majority, 93%, agree that making this tax deduction permanent should be a congressional priority, with 95% expressing concern about the potential expiration impact.

Key statistics from the national survey indicate that 83% of respondents prioritize government support for small businesses, with 45% considering such support extremely important. Support transcends party lines, with a majority of Republicans (83%), Democrats (86%), and Independents (79%) advocating for it. Furthermore, 77% of respondents believe the deduction levels the playing field for small businesses against larger corporations.

NFIB's survey also highlights economic fears tied to the deduction's expiration. A high 91% of Americans agree on the deduction's necessity for small business survival. Additionally, 79% recognize its positive influence on the economy, and 75% note its favorable impact within local economies. Half of those surveyed, 51%, express significant concern over the economic repercussions if the deduction lapses.

With the deduction established to provide small businesses a competitive edge against large corporations, its potential expiration could lead to substantial tax increases, threatening business growth and wage raises. NFIB continues to advocate for this mission both in Washington, D.C., and across all state capitals.