Roundtable participants U.S. Rep. Greg Murphy (R-NC) hosted in Greenville, NC, on Aug. 22 explored the impact of the looming expiration of Section 199A provisions of the Tax Cuts and Jobs Act (TCJA), as well as solutions that could protect Main Street businesses.
“With the TCJA set to expire in 2025, I met with local business owners to understand their deep concerns and discuss proactive strategies to mitigate the looming 43.4 percent tax liability they will face if Section 199A is not extended,” Rep. Murphy said. “My priority is to ensure that American small businesses are well-prepared to navigate these challenges so they can continue to prosper.”
Currently, small businesses categorized as pass-through entities may deduct up to 20 percent of their qualified business income under Section 199A of the TCJA, a deduction that allows them to stay competitive and focus on growing and investing in their ventures, according to Rep. Murphy, who noted that Main Street businesses employ the majority of private-sector workers and make up 95 percent of all businesses.
“Small business owners are the backbone of the American dream and play an instrumental role in fueling our local economies,” the lawmaker said. “They used these monies to expand their businesses, employ more people and provide better benefits to their employees.”
Rep. Murphy added that it’s critical to support American businesses as they face fierce competition from overseas companies whose governments supplement their products and have less regulation.
“So many family farms fall under 199A, and as they have been pounded by inflation and estate taxes, we must do all we can to keep them alive,” he said.
Among the participants who attended the roundtable were Dwayne Carson with Wine & Spirits Wholesalers of America; Russ Saputo at Carolina Eagle Distributing; Kelly Casey of Curtis Construction Company; Jason Jones of Copypro Inc.; Darrell Palasciano of The Providence Group of the Carolinas; and Robbie Parker with the U.S. Tobacco Cooperative, among others.