First Step for Permanent Tax Relief in Senate

Date: April 18, 2019

The Joint Committee on Taxation estimates that this deduction saved small businesses $28 billion in tax year 2018.

Uncertainty is poison for small business. But last week, the Senate helped move us one step closer to certainty by introducing legislation to make the tax cuts permanent and give small businesses the certainty they need to plan and succeed.

United States Sen. Steve Daines (R-Mont.) introduced the Main Street Tax Certainty Act, S.1149. It’s a companion bill to bipartisan legislation introduced in the House, H.R. 216, by Reps. Jason Smith (R-Mo.) and Henry Cuellar (D-Texas); and it intends to make the 199A Small Business Deduction, passed as part of the 2017 Tax Cuts and Jobs Act, permanent.

The Joint Committee on Taxation estimates that this deduction saved small businesses $28 billion in tax year 2018. And it is projected to save $415 billion over the next 10 years. In addition to the savings provided by the Small Business Deduction, there are higher levels for the alternative minimum tax and estate tax, as well as lower individual income tax rates. At last, small business owners are feeling financial relief.

Tax relief sparked critical growth among small businesses. 2018 saw record-high levels of job creation, expansion of operations, and wage and benefit increases. And just this February, small business job creation broke a 45-year record. Confidence and optimism among small business entrepreneurs continues to soar. Taxes are no longer cited as the single most important business problem by NFIB members.

But when Congress passed the TCJA, this relief was only temporary for small businesses. While large corporations will continue seeing tax relief, the small business tax provisions, namely the Small Business Deduction, are set to expire in 2025.

The Trump administration understands tax relief is essential to economic growth and has already endorsed making these tax cuts permanent. NFIB will continue to urge both the House and Senate to provide small business owners permanent tax relief.

RELATED: Learn more about tax relief at NFIB.com/Taxes.

 

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