A new poll released today by the National Federation of Independent Business (NFIB), Michigan’s leading small business advocacy organization, shows broad, bipartisan support for America’s small businesses along with “overwhelming” support for keeping the 20 percent Small Business Tax Deduction in the tax code.
According to the survey, more than eight in 10 Americans feel it is important for the federal government to support small businesses, including strong majorities of Republicans, Democrats, and Independents.
That support translates to strong agreement (93 percent) that making the 20 percent Small Business Tax Deduction permanent should be a top priority for Congress, with nearly all Americans (95 percent) expressing some concern about the impact an expiration of the deduction would have.
“The 20% Small Business Deduction allows Michigan’s small business owners to invest in their employees and communities — which is why it’s so important that Congress makes it permanent,” says Amanda Fisher, Michigan State Director for the NFIB.
“Small business owners need certainty and are concerned about the devastating consequences if Congress fails 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.”
Among the findings in the poll results were 83 percent of respondents said that it was important for the federal government to support small businesses. Forty-five percent believed that supporting small businesses was extremely important.
More than two-thirds of Republicans (83 percent), Democrats (86 percent), and Independents (79 percent) said that federal support for small businesses was important. Nearly eight in 10 (79 percent) want to see more support for small businesses.
Americans support the expiring 20 percent Small Business Tax Deduction that was included in the 2017 Tax Cuts and Jobs Act (TCJA).
- 62 percent of respondents want to keep the Small Business Tax Deduction in the tax code while only one in five supports letting it expire.
- 77 percent agree that the Small Business Tax Deduction helps level the playing field for small businesses by keeping their tax rates closer to those of larger corporations.
- Americans believe that the 20 percent Small Business Tax Deduction has helped small businesses and the American economy.
According to the poll, 91 percent of Americans agree that small businesses rely on the Small Business Tax Deduction. Almost 80 percent (79 percent) of Americans believe the Small Business Tax Deduction has a positive impact on the economy overall. Two-thirds (75 percent) of Americans believe the Small Business Tax Deduction has a positive impact on the local economy where they live.
More than half (51 percent) of Americans are extremely or very concerned about the impact on the economy if the Small Business Tax Deduction expires. Nearly all Americans (95 percent) express some concern about the impact an expiration of the deduction would have.
The 20 percent Small Business Deduction was established under the 2017 Tax Cuts and Jobs Act (TCJA) to level the playing field between small businesses and their large, corporate competitors.
This deduction, however, is set to expire at the end of 2025. Without Congressional action nine out of 10 small businesses will be hit with a massive tax hike, decimating their ability to expand business operations and raise wages for employees, according to NFIB.
In Related News: Michigan small business owners have serious concerns about the state and national economy, according to responses and data compiled through the Small Business Association of Michigan’s (SBAM) quarterly survey.
At the same time, Michigan small businesses are looking out for their employees, with 67 percent reporting they’ve increased wages over the last year to help staff meet emerging economic challenges. While wages have gone up, nearly half, 48 percent, of small businesses are taking steps to reduce overall expenses and another 23 percent are delaying capital expenditures to help prepare for the possibility of a recession.
“Small businesses across Michigan are seeing troubling signs on the economic horizon, and they’re taking active steps to prepare,” says Brian Calley, president and CEO of SBAM. “The good news is that they’re making those preparations while they support their teams, increasing wages and working to maintain staffing levels.”
Seventy-nine percent of SBAM survey respondents report either expanding their own workforce or keeping staffing levels basically unchanged.
Survey respondents were split on the impact of tariffs on their own businesses. More than half (53 percent) identify tariffs as a threat to their local business, while 34 percent do not believe they are relevant to their own operations. Thirteen percent believe federal trade policy changes could present positive opportunities for their business.
The survey also found that legislation in Lansing to restrict the ability of individuals to work as independent contractors could have an outsized impact on Michigan small business. More than three-fourths (77 percent) of respondents report that they either use or operate as independent contractors.
“What happens in Washington, D.C. and at the state Capitol has a real impact on small businesses,” says Calley. “Right now, those businesses are pointing to trouble on the horizon. Policymakers should listen.”
The survey was conducted in March 2025. Eighty-six percent of respondents have 50 employees or fewer.
, Michigan’s leading small business advocacy organization, shows broad, bipartisan support for America’s small businesses along with “overwhelming” support for keeping the 20 percent Small Business Tax Deduction in the tax code.){kind=link}