Big Sky Times

Daines Leads Bill Making Tax Relief for Montana Small Businesses Permanent

U.S. SENATE – U.S. Senator Steve Daines today led his colleagues in introducing a bill to make the 20 percent pass-through business tax deduction permanent. His bill, the “Main Street Tax Certainty Act,” willsupport Montana 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 are the heartbeat of our Montana communities, and providing them much-needed tax relief will help our economy flourish,” Daines said. “Making this tax deduction permanent will help Montana small businesses thrive, create jobs and expand their operations.”

Read the full text HERE.

Pass-through businesses represent 98 percent 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.

Senators John Barrasso (Wyo.), Marsha Blackburn (Tenn.), Jim Risch (Idaho), Bill Cassidy (La.), Roger Marshall (Kans.), Katie Britt (Ala.), Mike Braun (Ind.), Bill Hagerty (Tenn.), Chuck Grassley (Iowa), Tim Scott (S.C.), Ted Cruz (Texas), Roger Wicker (Miss.) and Kevin Cramer (N.D.) joined Daines in introducing the bill.

Statements of Support:

“Small and medium manufacturers, often organized as pass-through entities, are the backbone of the American supply chain. Section 199A allows pass-throughs to deduct 20% of their qualified business income, enhancing the ability of small firms to reinvest in their businesses and their workers and increasing the resilience of manufacturers in America. Unfortunately, Section 199A is scheduled to be eliminated at the end of 2025. The NAM applauds the reintroduction of the Main Street Tax Certainty Act, which will make permanent this crucial tax provision for small businesses as they continue to lead our economic recovery.” – Chris Netram, Managing Vice President of Tax and Domestic Economic Policy for the National Association of Manufacturers

“Montana small business owners thank Senator Daines for re-introducing this crucial legislation in the U.S. Senate. The Small Business Deduction has allowed owners to reinvest in their businesses and employees. We urge Congress to pass the Main Street Tax Certainty Act and make the deduction permanent.” –Ronda Wiggers, NFIB Montana State Director

“As small businesses manage economic headwinds, Congress has the opportunity to pass legislation that would provide tax certainty for Main Street by making the Small Business Deduction permanent. Unlike the corporate rate, the Small Business Deduction is set to expire in 2025 and its elimination would cause small businesses to curtail their hiring and growth plans. We are encouraged that Senator Steve Daines re-introduced the Main Street Tax Certainty Act in the Senate and urge members of the U.S. House to quickly follow.” – Brad Close, NFIB President

“Right now, restaurants and other small businesses need certainty in the tax code to navigate this economy. Food price inflation, supply chain disruption, labor force instability, and banking troubles create major challenges. But the Small Business Tax Deduction provides an invaluable resource to retain earnings and reinvest in our restaurants, our communities, and our people. We thank Senator Daines for his leadership to advance the Main Street Tax Certainty Act.” – Brad Anderson, Buffalo Wild Wings Franchise Owner, Billings, MT

Original source can be found here.