Fourteen Republican Senators, including Louisiana's Bill Cassidy, M.D. (R), introduced a bill to make the 20% pass-through business tax deduction permanent. According to an official statement from Sen. Cassidy, 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,” Cassidy said. “Let’s make the law permanent!”
According to Cassidy's press release, pass-through businesses represent 98% of all businesses and employ approximately 50 percent of American workers. Cassidy insists that 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.
More than 130 organizations relevant to the policy have publicly supported the Main Street Tax Certainty Act, 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 was joined by U.S. Senators Steve Daines (R-MT), 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.
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