Small Businesses to Congress: Prioritize Passing the Main Street Tax Certainty Act this Congress

July 19, 2023

Small Businesses to Congress: Prioritize Passing the Main Street Tax Certainty Act this Congress

WASHINGTON, D.C. (July 19, 2023) – The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, supports the re-introduction of the Main Street Tax Certainty Act 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. “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 after 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.” NFIB Vice President of Federal Government Relations Kevin Kuhlman 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. 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. Earlier this year, NFIB Pennsylvania member Warren Hudak and Georgia member Alison Couch testified before Congressional committees on their small business tax story. In a recent NFIB member ballot, 91% of NFIB members said they support permanently extending the expiring provisions of the Tax Cuts and Jobs Act. According to NFIB’s 2021 tax survey, nearly half of small business owners (48%) reported the uncertainty of expiring tax provisions is impacting their current or future business plans. In NFIB’s 2019 tax survey, 81% of small business owners believe the Small Business Deduction is important. NFIB joined a coalition letter with over 160 other associations to encourage Congress to pass the Main Street Tax Certainty Act.

Topics:

Taxes

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