To support small businesses, create jobs, and strengthen the nation’s economy, U.S. Sens. Steve Daines (R-MT) and Bill Cassidy (R-LA) recently joined a dozen of their GOP colleagues to introduce legislation that would make permanent the 20 percent pass-through business tax deduction.
“Montana small businesses are the heartbeat of our Montana communities, and providing them much-needed tax relief will help our economy flourish,” Sen. Daines said. “Making this tax deduction permanent will help Montana small businesses thrive, create jobs, and expand their operations.”
Sen. Daines on May 18 sponsored the Main Street Tax Certainty Act, S. 1706, with 14 original cosponsors, including Sen. Cassidy and U.S. Sens. Marsha Blackburn (R-TN), Thom Tillis (R-NC), and Roger Wicker (R-MS), to amend the Internal Revenue Code of 1986 to make permanent the deduction for qualified business income, according to the bill’s text.
“Congress neglecting to renew a law should not be the reason that small businesses suddenly owe more taxes,” said Sen. Cassidy. “Let’s make the law permanent.”
Pass-through businesses represent 98 percent of all businesses and employ approximately 50 percent of American workers, according to a bill summary provided by the lawmakers, which noted that without congressional action, these businesses would face a massive tax hike and likely be forced to reduce wages or eliminate jobs.
The 2017 Tax Cuts and Jobs Act created Section 199A of the Internal Revenue Code, which allows pass-through businesses to deduct up to 20 percent of qualifying income, the summary says. The deduction is currently slated to expire at the end of 2025.
S. 1706 is supported by more than 130 stakeholder groups, including the National Association of Manufacturing, the S Corporation Association, the National Federation of Independent Business, the American Farm Bureau Federation, the National Association of Professional Insurance Agents, the Independent Community Bankers Association of America, and the National Beer Wholesalers Association, among many others.