The deduction, which is scheduled to expire at the end of 2025, is heavily relied upon by many Big “I" members and their clients to expand their small businesses, hire more employees, and better serve their communities.
This week, Rep. Llyod Smucker (R-Pennsylvania) reintroduced the “Main Street Tax Certainty Act" and was joined by over 80 cosponsors in the U.S. House of Representatives. The Big “I" supports this bipartisan legislation, which would make permanent the 20% small business deduction (Section 199A) passed as part of the 2017 Tax Cuts & Jobs Act.
The deduction, which is scheduled to expire at the end of 2025, is heavily relied upon by many Big “I" members and their clients to expand their small businesses, hire more employees, and better serve their communities. Pass-through entities have factored this deduction into their operations so its expiration would result in a tax increase on many small businesses. Such an increase would create an unlevel playing field and put pass-throughs at a disadvantage to those filing taxes at the corporate rate.
This legislation is now bicameral with introduction of S.1706 earlier this year by Sen. Steve Daines (R-Montana). That bill has a total of 18 cosponsors.
This month, the Big “I" joined with other small business groups and sent a letter of support to Rep. Smucker and Sen. Daines, applauding their effort to help millions of small businesses achieve economic growth and provide greater employment to their communities.
Reintroduction of this legislation and securing cosponsors was a top priority for the Big “I" at the 2023 Big “I" Legislative Conference in Washington, DC. As Congress continues to discuss tax reform and related legislation, the Big “I" will continue to advocate for independent insurance agents and provide updates through the News & Views e-newsletter.
Raaed Haddad is Big “I" director of federal government affairs.