Prairie State Wire

A recent survey conducted by the National Federation of Independent Business (NFIB), a prominent advocacy group for small businesses in Illinois, reveals significant support for the continuation of the 20% Small Business Tax Deduction. This deduction is a critical component of the 2017 Tax Cuts and Jobs Act (TCJA) and is set to expire at the end of 2025 unless Congress acts to extend it.

According to the poll, over 80% of Americans believe it is important for the federal government to support small businesses, with broad support spanning Republicans, Democrats, and Independents. A notable 93% of respondents agree that making the 20% Small Business Tax Deduction permanent should be a priority, and 95% express concern over the potential impacts of the deduction's expiration.

"This research reinforces the high stakes of this Congressional tax debate,” said 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 and deliver the certainty that small businesses need to continue to grow, hire, and give back to their communities.”

NFIB Illinois State Director Noah Finley highlighted the importance of small businesses in the local economy. “Illinoisans understand that small businesses are the backbone of our communities, driving local economic growth and investments,” he said. “Making the 20% Small Business Tax Deduction permanent is critical for Main Street businesses across the state.”

Key findings from the survey indicate widespread backing for small businesses, with 83% of respondents affirming the importance of federal support. There is also strong advocacy for maintaining the Small Business Tax Deduction, with 62% wanting it retained in the tax code. Moreover, 77% believe that it helps level the playing field for small businesses compared to larger corporations.

The deduction, originally established to provide equity between small businesses and their larger counterparts, plays a significant role in aiding the American economy. A large majority, 91%, agree that small businesses rely on this deduction. Additionally, 79% believe the deduction positively impacts the economy, while 75% see benefits in their local economies.

The survey involved a representative sample of 2,000 American voters and included an oversample of 500 small business owners. Conducted between March 21 and March 25, 2025, the poll has a margin of error of +/- 2.0%. If Congress does not extend the deduction, up to 90% of small businesses could face substantial tax increases, hindering their growth and capacity to raise employee wages.