U.S. SENATE – Amid ongoing discussions on the permanency of President Trump’s tax cuts, U.S. Senator Steve Daines (R-Mont.), Majority Leader John Thune (R-S.D.) and 33 Republican Senators introduced the “Main Street Tax Certainty Act” to make the 20 percent pass-through business tax deduction permanent. Should these tax cuts expire, small businesses will face an immediate and massive tax hike.
“As the son of a contractor, I’ve seen firsthand the hard work it takes to keep a small business flourishing- especially as Americans are still grappling with the effects of Joe Biden’s inflation. It’s absolutely crucial that we pass this legislation to prevent a 20 percent tax increase for hardworking Montanans and I’ll keep fighting for ways to support Montana small businesses, which provide the majority of jobs in our state,” said Daines.
“Small businesses are the economic engine that drive growth and jobsin South Dakota and across our country. This legislation is critical to permanently extending a key provision from the Tax Cuts and Jobs Act and ensuring our small businesses and farms and ranches are not hit with a crippling tax hike at the end of 2025,” said Thune.
Senators John Barrasso (R-Wyo.), Shelley Moore Capito (R-W.V.), James Lankford (R-Okla.), Joni Ernst (R-Iowa), Tom Cotton (R-Ark.), Tim Scott (R-S.C.), Chuck Grassley (R-Iowa), Kevin Cramer (R-N.D.), Jerry Moran (R-Kan.), Marsha Blackburn (R-Tenn.), Mike Rounds (R-S.D.), Pete Ricketts (R-Neb.), Katie Britt (R-Ala.), Jim Risch (R-Idaho), Eric Schmitt (R-Mo.), Roger Wicker (R-Miss.), Cynthia Lummis (R-Wyo.), Cindy Hyde-Smith (R-Miss.), Tommy Tuberville (R-Ala.), Ted Cruz (R-Texas), John Hoeven (R-N.D.), Thom Tillis (R-N.C.), Roger Marshall (R-Kan.), Jim Justice (R-W.V.), Tim Sheehy (R-Mont.), Deb Fischer (R-Neb.), Bill Cassidy (R-La.), Ted Budd (R-N.C.), Rick Scott (R-Fla.), Bill Hagerty (R-Tenn.), Todd Young (R-Ind.), John Kennedy (R-La.) and Jim Banks (R-Ind.) joined Daines and Thune in introducing the legislation.
Read the bill HERE.
Background:
The 20 percent small business deduction, section 199A, was created as a part of President Trump’s 2017 tax cuts to level the playing field between small businesses and large corporations. Without Congressional action, 9 out of 10 small businesses will be hit with a massive tax hike when this deduction is set to expire at the end of 2025.
Recently, a new study from Ernst and Young (EY) highlighted the economic activity supported by this small and family-owned business tax deduction, including 2.6 million jobs and $325 billion of the GDP.
Statements of Support:
“Congress must preserve the pass-through deduction to protect the small and medium manufacturers that are the backbone of the American supply chain. Manufacturers strongly support the Main Street Tax Certainty Act, which will make permanent this crucial provision and ensure that our tax code supports manufacturers in America as they invest in their businesses, create jobs, and drive the economy.” – Chris Netram, Managing Vice President of Policy, National Association of Manufacturers
“If Congress fails to act, more than 30 million small businesses will face a massive tax hike at the end of this year. The 20% Small Business Deduction allows nine out of 10 Main Street job creators to compete, grow their business, hire new employees, raise wages, and give back to their communities. NFIB is grateful for Sen. Daines and Rep. Smucker for their consistent leadership to stop the small business tax hike and urges Congress to pass the Main Street Tax Certainty Act to make the 20% Small Business Deduction permanent.” – NFIB President Brad Close
“Over the past five years, food prices have increased by 35% even as the family-owned businesses that operate Montana restaurants and hotels balance higher costs for labor and maintenance. If the pass-through tax deduction expires as it’s set to do next year, a growing part of our local economy will be severely strained. Montana hospitality and retail operators strongly support Senator Daines’ “Main Street Tax Certainty Act” which provides stability and relief by making permanent this vital tax deduction.”— Brad Griffin, President, Montana Retail Association
Over 230 trade associations also signed a letter in support of Daines’ “ Main Street Tax Certainty Act.” Read the letter HERE.
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Contact: Matt Lloyd, Rachel Dumke