Colleagues introduce a bill to provide tax relief for small businesses

The Main Street Tax Certainty Act was introduced by US Senator Katie Britt, R-Alabama, US Senator Steve Daines, R-Mont., and 12 other Republican colleagues, which will aid small enterprises, generate employment, and boost the economy.

The Main Street Tax Certainty Act would permanently enact the 20% pass-through business tax deduction that was put into effect by the 2017 Tax Cuts and Jobs Act. The tax break is set to expire at the end of 2025, which would cause a significant tax increase for businesses that would likely be forced to reduce wages or lay off employees.

The foundation of the American economy consists of privately held and family-run enterprises that are organized as pass-through entities. They account for 95% of all enterprises and the majority of private sector employees. They also serve as the social and economic backbone of innumerable communities around the country. Many communities would face a more uncertain future of slower growth, fewer jobs, and more abandoned structures without these enterprises and the jobs they bring.

Since the Biden Administration is determined to impose its reckless tax and spend agenda on hard-working Americans, small companies are still struggling to survive, according to Senator Katie Britt.

Section 199A of the Internal Revenue Code, which was established by the 2017 Tax Cuts and Jobs Act, permits firms to deduct up to 20% of their eligible income. The present deduction is scheduled to end in 2025, thereby leading to a major tax increase on the country’s small enterprises.

According to Buchanan, the most senior Republican and Vice Chair of the Ways and Means Committee, “Republicans delivered the most comprehensive overhaul of the United States tax code in more than three decades in 2017 and achieved historic economic growth.” We need to give hardworking people and Main Street companies some much-needed relief and security and make sure these tax cuts don’t expire because Americans continue to suffer as a result of record-high inflation and an uncertain economic future.

The tax deduction is set to expire at the end of 2025, which would cause a significant tax increase for businesses that would likely be obliged to cut pay or lay off employees. In fact, according to initial calculations, a single mother with two children earning $52,000 would experience a $1,500 tax increase in 2026. The additional tax burden would be more than $1,700 a year for a married couple with two kids and an income of $85,000.

More than 130 stakeholder organizations, including the National Association of Manufacturing, the S Corporation Association, the 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, have all expressed strong support for the legislation.

The “Main Street Tax Certainty Act” would make the 20 percent pass-through deduction permanent, fostering economic growth and giving small business owners the security they need to create jobs.

In an effort to prevent the Small Business Deduction from being eliminated in 2025, both parties have supported the Main Street Tax Certainty Act. For millions of employers that are set up as sole proprietorships, S companies, and partnerships, including thousands of hotels, it would guarantee ongoing tax reduction, said Chip Rogers, President and Chief Executive Officer of AHLA.