Iowa — The federal Small Business Deduction will expire at the end of next year, and unless Congress acts, small businesses in Iowa and elsewhere will no longer be able to deduct up to 20 percent of what’s considered qualified income.
Jeff Brabant, with the National Federation of Independent Businesses, says that deduction is a big deal, benefitting more than nine in every ten small businesses across the country.
Brabant says coffee shops, barber shops, and all sorts of small mom-and-pop businesses could have to pay more in taxes if the 2017 law is allowed to expire.
An estimate from the US Small Business Administration finds more than 95 percent of the businesses in Iowa are small businesses. Brabant says many small businesses in Iowa and nationwide have been struggling since the start of the COVID-19 pandemic.
Inflation, Brabant says, remains the top issue small business owners face post-pandemic. The Main Street Tax Certainty Act would make that deduction permanent for small and family-owned businesses, which Brabant says owners use to invest in their employees and growth for the future.
