Leading: Miller-Meeks delivers tax cuts for small businesses

Small business owners have faced their fair share of challenges in the past decade. Inflation, workforce shortages, and supply chain issues have rattled day-to-day operations and budgets. Thankfully, President Donald Trump and Congress have given small businesses a much-needed lifeline that will allow Main Street to grow and further invest in our communities.

In Iowa, the National Federation of Independent Businesses is comprised of thousands of small business owners who represent a wide array of industries, including retail, agriculture, health care, and manufacturing. Many NFIB members started their businesses during tough times, and the burden of high taxes often made it difficult to invest in their companies, employees, and communities. When the 20% Small Business Tax Deduction was enacted in 2017, they felt a great deal of relief. Small businesses have been able to deduct 20% of their business income each year, leveling the playing field against larger corporations.

This year, however, the small business tax deduction was set to expire, which would have resulted in a massive tax hike for nine out of ten small businesses. Thankfully, making the Small Business Deduction permanent was included in tax legislation that was recently passed by Congress and signed into law by President Trump. One notable member of Congress who supported this bill was Iowa’s very own Congresswoman Mariannette Miller-Meeks.

As a former small business owner, Rep. Miller-Meeks recognized the importance of this tax relief and stood firm in her support. With the savings from this deduction, the family-owned farms and manufacturers that make up Iowa’s 1st Congressional District can hire more employees, offer higher wages, and invest in community initiatives. From sponsoring local sports teams to supporting mental health initiatives for first responders, the impact of these contributions is invaluable.

Now that the Small Business Deduction is permanently established as part of the recently passed tax legislation, we can look forward to a brighter future. With the assurance of ongoing tax relief, Iowa’s small businesses will continue to create jobs and foster economic growth.

Research shows that small businesses will now create more than 1.2 million new jobs a year as they use their tax saving to grow and invest in their employees, and give back. In Iowa specifically, more than 12,000 jobs a year will be created. Just think how much that will benefit our economy and local communities.

On behalf of Iowa’s small businesses, I would like to thank Congress and the Trump Administration for empowering small businesses. And a special thank you to Rep. Miller-Meeks for remaining dedicated to Iowa's small businesses. Your support has made a lasting difference in the lives of countless Iowans, and we are excited to continue building a prosperous future together.

Matt Everson is the Iowa director for the National Federation of Independent Business.

What’s in the Big Beautiful Bill Act for Small Business

Since 2017, the Small Business Tax Deduction has allowed small businesses to deduct up to 20% of their business income. Without immediate action by Congress, this essential tax deduction was set to expire at the end of the year. The One Big Beautiful Bill Act provides permanent tax relief

Increases Section 179, Small Business Expensing Cap from $1.25 million to $2.5 million. This will allow small businesses to fully expense business equipment purchases in the first year.

Makes the 2017 marginal rate cuts permanent. Without this provision, five out of seven marginal (individual) income tax rates will rise at the end of the year. Nine out of 10 small businesses are organized as pass-through businesses and pay regular income tax rates rather than the C-corporation rate.

Increases and makes permanent the Small Business Estate Tax Exemption. The new exemption thresholds will be set at $15 million for individual filers and $30 million for joint filers.

Small businesses can deduct 100% of the cost in many cases for the purchase of new computers, machinery or other equipment.

Small businesses can immediately deduct 100% of domestic R&D costs incurred after 2024.

Sources: whitehouse.gov; CNBC.