WASHINGTON – U.S. Senators Bill Cassidy, M.D. (R-LA), Steve Daines (R-MT), and 12 Senate colleagues introduced a bill to make the 20% pass-through business tax deduction permanent. The Main Street Tax Certainty Act will support small businesses, create jobs, and strengthen our economy.
“Congress neglecting to renew a law should not be the reason that small businesses suddenly owe more taxes,” said Dr. Cassidy. “Let’s make the law permanent!”
“Montana small businesses are the heartbeat of our Montana communities, and providing them much-needed tax relief will help our economy flourish,” said Senator Daines. “Making this tax deduction permanent will help Montana small businesses thrive, create jobs and expand their operations.”
Pass-through businesses represent 98% of all businesses and employ approximately 50 percent of American workers. The Main Street Tax Certainty Act would help grow the economy and provide much needed certainty for small business job creators by making permanent the 20 percent pass-through deduction. Absent congressional action, these businesses will face a massive tax hike and will likely be forced to reduce wages or eliminate jobs.
The 2017 Tax Cuts and Jobs Act created Section 199A of the Internal Revenue Code, which allows pass through businesses to deduct up to 20 percent of qualifying income. The deduction is currently slated to expire at the end of 2025. Through making this deduction permanent, this legislation ensures that millions of Main Street businesses continue to maintain tax parity with large corporations.
The bill has received significant support from over 130 stakeholder groups, including the National Association of Manufacturing, S Corporation Association, National Federation of Independent Business (NFIB), the American Farm Bureau Federation, the National Association of Professional Insurance Agents (PIA), the Independent Community Bankers Association of America, and the National Beer Wholesalers Association.
Cassidy and Daines were joined by U.S. Senators John Barrasso (R-WY), Marsha Blackburn (R-TN), Jim Risch (R-ID), Roger Marshall (R-KS), Katie Britt (R-AL), Mike Braun (R-IN), Bill Hagerty (R-TN), Chuck Grassley (R-IA), Tim Scott (R-SC), Ted Cruz (R-TX), Roger Wicker (R-MS), and Kevin Cramer (R-ND) in introducing the bill.