Daines, Smith, Cuellar Introduce Bipartisan, Bicameral Bill Making Tax Relief for Small Businesses Permanent
WASHINGTON, D.C. – U.S. Senator Steve Daines (R-Mont.), Congressman Jason Smith (R-Mo.), and Congressman Henry Cuellar (D-Texas) introduced bipartisan, bicameral legislation to make the 20 percent pass-through small business tax deduction permanent. Their bill, the “Main Street Tax Certainty Act” will support small businesses, help create jobs and strengthen our economy. Without congressional action the tax deduction will expire at the end of 2025.
“Montana small businesses help our communities thrive and prosper--they're what make our hometowns feel like home," Daines said. “Making this main street tax relief permanent will provide the certainty needed to help Montana small businesses stay afloat, create more jobs, and expand their operations."
“When Main Street thrives, America thrives,” said Congressman Smith. “On behalf of the tens of millions of working class Americans employed by our country’s small businesses, I couldn’t be prouder to lead the charge to ensure this tax cut for small businesses is made permanent. These workers, who are the backbone of this country, can compete against anyone in the world when they are on a level playing field. My legislation ensures our tax code remains fair to Main Street businesses who power our economy.”
“Main Street businesses are the backbone of our economy, employing the majority of U.S. workers and representing 95 percent of all businesses,” said Congressman Henry Cuellar. “This bipartisan legislation will ensure permanent tax relief for the millions of employers by making the 20 percent pass through deduction permanent. I am committed to delivering critical relief for our nation’s small businesses and the communities they serve.”
Read the full text HERE.
The legislation ensures that millions of Main Street businesses continue to maintain tax parity with large corporations. Section 199A, enacted as part of the 2017 Tax Cuts and Jobs Act, allows certain pass through businesses to deduct up to 20 percent of certain income.
The section 199A deduction is available to eligible taxpayers with qualified business income (QBI) from qualified trades or businesses operated as sole proprietorships or through partnerships, S corporations, trusts, or estates, as well as for qualified REIT dividends and income from publicly traded partnerships. The section 199A deduction is not available for C corporations.
The bill has received significant support from over 80 stakeholder groups, including the 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.
To read the letter of support from over 80 groups, click HERE.
Statements of Support:
“NFIB strongly supports the “Main Street Tax Certainty Act.” The Small Business Deduction allows pass-through businesses the ability to deduct up to 20 percent of qualified business income and, unfortunately, it is currently scheduled to expire at the end of 2025. This legislation makes this critical deduction permanent for small business owners across the country. After emerging through this tumultuous pandemic, the last thing small business owners need is additional uncertainty. We commend Senator Steve Daines (R-MT) and Representatives Jason Smith (R-MO) and Henry Cuellar (D-TX) for their continued leadership and assistance to small business owners.” – National Federation of Independent Businesses