U.S. House Re-introduces Bill to Stop a Small Business Tax Hike

Date: July 19, 2023

Crucial small business legislation re-introduced in both chambers of Congress

On Tuesday, July 18, the Main Street Tax Certainty Act was re-introduced in the U.S. House of Representatives. Representatives Lloyd Smucker (R-PA) and Henry Cuellar (D-TX) introduced the legislation in the House and Senator Steve Daines (R-MT) previously introduced it in the U.S. Senate. The legislation would make the crucial Small Business Deduction permanent, which is currently set to expire at the end of 2025.

“Passing the Main Street Tax Certainty Act would stop an enormous tax increase currently scheduled to strike small businesses at the end of 2025,” said Brad Close, NFIB President. “The 20% Small Business Deduction is set to expire in 2025, and without it, small businesses will have to limit their plans to grow, invest, and hire. By making the deduction permanent, small business owners will have the tax certainty they need to make business decisions about their future. We are encouraged that this important legislation has been introduced in both the House and the Senate and urge Congress to consider it.”

The 20% Small Business Deduction (Section 199A) allows pass-through small businesses the ability to deduct up to 20% of qualified business income and is scheduled to expire at the end of 2025. The Main Street Tax Certainty Act would make this critical tax deduction permanent for small business owners across the country.

“Pennsylvania small business owners thank Rep. Smucker for re-introducing this critical legislation,” said Greg Moreland, NFIB Pennsylvania State Director. “The Small Business Deduction has been a crucial tax deduction for small business owners in the Commonwealth as it has allowed owners to reinvest in their business and employees. We ask Congress to pass the Main Street Tax Certainty Act and make the Small Business Deduction permanent.”

In a recent NFIB member ballot, 91% said they support permanently extending the expiring provisions of the Tax Cuts and Jobs Act such as the 20% Small Business Deduction. Advocacy by NFIB members was instrumental in securing the 20% Small Business Deduction, and NFIB will continue advocating to have the deduction made permanent. NFIB Pennsylvania member David Cranston testified before the U.S. Senate Finance Committee in 2018 to explain to lawmakers how the Small Business Deduction has benefited his small business. In NFIB’s 2019 tax survey, 81% of small business owners believe the Small Business Deduction is important.

According to NFIB’s 2021 tax survey, nearly half of small business owners (48%) reported the uncertainty of these expiring tax provisions is impacting their current or future business plans. Earlier this year, NFIB Pennsylvania member Warren Hudak and Georgia member Alison Couch testified before Congressional committees sharing their small business tax stories. NFIB Vice President of Federal Government Relations Kevin Kuhlman also recently testified before the U.S. House Budget Committee on how Congress can mitigate economic challenges on small businesses by making the Small Business Deduction permanent. This month, NFIB joined a coalition letter with over 160 other associations to encourage Congress to pass the Main Street Tax Certainty Act.

Now is the time to urge Senators and Representatives to co-sponsor the Main Street Tax Certainty Act by explaining how a tax hike would impact small businesses. Consider sharing how much your taxes will go up if the Small Business Deduction expires (Line 13 of your Form 1040.)


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