Last week — on May 18 — Montana Republican, Sen. Steve Daines reintroduced the Main Street Tax Certainty Act of 2023. If the bill passes the U.S. Senate and successfully makes it through the House, it will permanently put the 20% tax deduction available to some passthrough businesses and corporations into the tax code.
The current deduction expires in December of 2025 so there is time to work on making it permanent. PIA National strongly supports Daines’ legislation and will work hard to get a companion bill reintroduced in the House.
Rep. Jason Smith — a Republican from Missouri — has supported such legislation for a long time and it is said that he’s planning to reintroduce the bill in the House.
That news is good news to National Federation of Independent Business President Bard Close.
“As small businesses manage economic headwinds, Congress has the opportunity to pass legislation that would provide tax certainty for Main Street by making the Small Business Deduction permanent,” Close said. “Unlike the corporate rate, the Small Business Deduction is set to expire in 2025 and its elimination would cause small businesses to curtail their hiring and growth plans.”
Small businesses around the country have benefitted from the legislation that is titled, the Small Business Deduction (Section 199A). It lets Sole Proprietorships, S-Corporations and LLCs to take 20% of business income — qualified income — and then deduct it.
Source link: PIA National — https://bit.ly/3P3Y9dV
Source link: NFIB — https://bit.ly/42g68HF