NFIB Iowa members receive an update from Congressman Feenstra on his efforts to support pro-small business policies in Washington, D.C.
In an exclusive letter to NFIB members, Rep. Randy Feenstra (R-IA) provides an update on his efforts to support pro-small business policies in Washington, D.C. Among other issues, Rep. Feenstra highlights his support for the Main Street Tax Certainty Act to stop a massive tax hike on small businesses.
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Rep. Feenstra’s full letter to NFIB members is below.
I hope that the year is off to a great start for all of you.
I want to thank you all for your advocacy on behalf of Iowa’s small businesses and your work every day to contribute to our economy, keep our main streets strong, and create good jobs in our communities. Small businesses truly are the backbone of our economy, and we need to work together to support job creators, entrepreneurs, and family-owned-and-operated businesses.
Serving on both the House Agriculture Committee and the House Ways and Means Committee, I am focused on passing pro-growth, pro-business economic policies that help our country compete against China, allow our small businesses to keep more of their hard-earned money, and ensure that our job creators can invest in their employees.
I want to touch on three main topics that I believe are vital to the strength of our business community and our main streets.
First, we need to fully eliminate the death tax, which, in my opinion, is double taxation at its worst. As you know, when a family member passes away, the federal government imposes an unfair and costly tax on the transfer of property, land, and other assets from the deceased family member to heirs of family farms and small businesses. Iowa families grieving the loss of a loved one should not face an enormous tax bill from the federal government just to continue the family tradition of farming or keep their small business open and operational.
Nearly half of our nation’s small businesses view the death tax as a very important issue. That’s why I recently led 165 of my colleagues in introducing the Death Tax Repeal Act to permanently repeal the death tax, ensure that hardworking families, farmers, and small businesses keep more of their hard-earned money, and strengthen family-owned-and-operated enterprises in Iowa. By fully eliminating the death tax, we can help family farms and small businesses to succeed and encourage the next generation of Iowa farmers and business owners to plant their roots in rural Iowa, support our main streets, and contribute to our economy.
Second, we need to permanently reauthorize the 20% deduction for qualified business income beyond its 2025 expiration date. During my 36 County Tour, I’ve had the opportunity to tour businesses large and small and visit many beautiful main streets in towns of less than 300 people and cities of over 10,000. As a former city administrator in my hometown of Hull, I know – from experience – that our main streets are only as strong as the folks who have taken great financial risk to start a business. Without entrepreneurs and hardworking business owners, our main streets would be a shell of what they are today.
So, I helped introduce the Main Street Tax Certainty Act which would permanently allow Iowa small businesses to deduct 20% of their qualified business income from their federal taxes. This legislation ensures that our small businesses continue to benefit – uninterrupted – from this much-needed tax cut, and I will do everything in my power to see that it becomes law.
Third, I am actively working to repeal the 1099-K reporting requirement for small businesses. In 2022, the Biden administration unveiled a proposal to track any financial transaction over $600 between any bank account and payment app like Venmo and PayPal. While implementation of this misguided policy was rightfully delayed after pushback from organizations like NFIB, we can never let this proposal take effect. This is just another burdensome mandate from the federal government on Iowa business owners that diverts precious time and resources from running their business towards complying with mountains of unnecessary paperwork and red tape.
Finally, I voted for, and the U.S. House of Representatives passed, the Tax Relief for American Families and Workers Act. This package includes provisions vital to the long-term success of our economy and our businesses. For example, this legislation allows businesses to immediately deduct domestic research-and-development investments and depreciate 100% of the cost of equipment and other assets. It also increases the deduction for interest expenses to help our small businesses grow and meet payroll, particularly during this time of high interest rates. I firmly believe this bill is a victory for our business community.
I encourage you to continue to be involved and advocate for policies that benefit our small businesses and main streets. Your voice is vitally important to passing meaningful legislation in Congress. Please never hesitate to contact my office online at Feenstra.House.Gov or give us a call at 202-225-4426.
I will continue to be a strong advocate for our families, small businesses, and our vibrant communities.
Blessings,
Randy Feenstra
