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Small Business Week is a time to recognize what Iowans already know: small businesses are the backbone of our economy, and the numbers prove it.
Across our state, there are nearly 290,000 small businesses, making up over 99 percent of all businesses in Iowa. These businesses employ more than 630,000 Iowans—about 46 percent of the entire workforce—from downtown shops to family farms and local manufacturers. Small businesses don’t just create jobs; they support families and strengthen our communities. They are also driving growth across Iowa.
In just the past year, Iowa saw nearly 10,000 new small businesses created, showing that entrepreneurship is alive and well. That kind of growth doesn’t happen by accident; it happens when we foster an environment where hardworking families are rewarded and opportunity is within reach. To keep Iowa’s economy strong, we must support small businesses by cutting red tape, expanding access to capital, and strengthening our workforce. We must create commonsense regulations that allow rural businesses to grow and not hold them back.
We need to continue pushing for policies like the Working Families Tax Cuts, which helped rural small businesses by providing an average of $3,139 in savings for Iowa families, increased refunds by 11 percent, and secured 66,000 jobs. Creating good-paying jobs increases the number of people moving into Iowa and expands our communities. Supporting small businesses through policies that cut red tape and increase capital access is essential for Iowa’s economic success, including tax relief for family-owned businesses.
The permanent extension of the 20% small business deduction from the Working Families Tax Cuts gives Iowa’s nearly 290,000 small businesses significant relief. Iowa is projected to add 12,000 jobs annually over the first decade the deduction is in place, with that figure doubling to 24,000 jobs per year after 2035. Iowa’s GDP is projected to increase by $562 million annually during the first 10 years, rising to $1.2 billion per year beyond 2035. With this relief, Iowa small businesses can keep more of what they earn.
This crucial tax relief means small business owners can continue creating jobs, energizing our economy nationwide, and preventing a devastating 20% tax hike on Main Street. As a former small business owner, I know firsthand, higher taxes would hit family-owned businesses hard and threaten jobs across the country.
I know that running a small business in Iowa means long hours, tough calls, and deep roots in the community. It also means you deserve a tax code that rewards hard work; not one that holds you back. We must empower small businesses to compete, grow, and thrive. The permanent 199A Small Business Deduction from the Working Family Tax Cuts is helping 63,780 small businesses in my district benefit from an increased qualified business income deduction. Iowa’s family farms and small businesses depend on the 199A deduction to survive. This allows businesses to continue growing, invest in their workers, and keep more of what they earn.
Small businesses are the heart of our communities, and I will continue fighting to ensure they have the tools, flexibility, and support they need to succeed, because when small businesses succeed, Iowa succeeds.
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