Two-thirds of Americans favor preserving tax cuts for small businesses and exempting small businesses from new regulations.
WHY IT MATTERS – The Tax Cuts and Jobs Act of 2017 is set to expire in 2025 and is expected to be a major point of contention in the budget negotiation process between House Republicans and Democratic President Joe Biden.
- Preserving the 2017 Tax Cut and Jobs Act and exempting small businesses from new regulations is part of a larger Small Business Prosperity Plan released by the Job Creator’s Network.
IN CONTEXT – Small business has consistently ranked highest in favorability among the public, next to the military.
BIPARTISAN SUPPORT – An America’s New Majority Project Poll conducted by McLaughlin & Associates asked voters about their support for these two initiatives. Voters were asked:
The 2017 Tax Cuts and Jobs Act, which significantly lowered the tax burden on small businesses, is set to expire. Would you support or oppose Congress making the tax cuts permanent?
- 68 percent – Support (80 percent GOP, 63 percent Democrat, 60 percent Independent)
- 17 percent – Oppose (9.3 percent GOP, 24 percent Democrat, 18 percent Independent)
They were also asked:
Unlike Large corporations, small businesses have a more difficult time affording compliance costs that are associated with government regulations. Would you support or oppose exempting small businesses from new regulations that would burden entrepreneurs with increased compliance costs?
- 66 percent – Support (74 percent GOP, 62 percent Democrat, 62 percent Independent)
- 18 percent – Oppose (12 percent GOP, 23 percent Democrat, 18 percent Independent)
BUDGETARY DISCONNECT – At a practical level, the expiration of the 2017 tax cuts is a de facto tax increase for the American people. At a budget level, however, preserving the current tax rates is scored as a tax cut, since current projections assume their expiration.
REALITY CHECK – Despite this strong support for preserving the tax cuts for small businesses, support for the 2017 Tax Cuts and Jobs Act is mixed.
- But people have a bias for the status quo, so opposing a tax increase is easier than defending a tax cut.
BOTTOM LINE – Republicans can use the popularity of small business and the public’s aversion to tax increases to extend the 2017 Tax Cuts and Jobs Act and push for other policies that benefit small business.
This McLaughlin & Associates Poll conducted on behalf of America’s New Majority Project of 1,000 likely voters was conducted February 17-21st, 2023.