The National Federation of Independent Business (NFIB) is urging Congress to pass the Main Street Tax Certainty Act, a legislation important for securing the financial future of small businesses across the country.
The legislation, reintroduced in the U.S. House of Representatives by Representatives Lloyd Smucker (R-PA) and Henry Cuellar (D-TX) and previously introduced in the U.S. Senate by Senator Steve Daines (R-MT), aims to prevent an upcoming tax hike on small businesses slated for the end of 2025.
NFIB President Brad Close emphasized the potential impact of this bill on small business growth and expansion. “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 Close. “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.”
The 20% Small Business Deduction, or Section 199A, permits pass-through small businesses to deduct up to 20% of qualified business income. If not made permanent, the deduction will expire after 2025. The Main Street Tax Certainty Act is designed to make this vital tax deduction permanent, providing much-needed tax certainty for small business owners nationwide.
Greg Moreland, NFIB Pennsylvania State Director, applauded the reintroduction of the bill. “Pennsylvania small business owners thank Rep. Smucker for re-introducing this critical legislation,” he stated. “The Small Business Deduction has been a crucial tax deduction for small business owners as it has allowed owners to reinvest in their business and employees.”
Several NFIB representatives have testified before Congress about the importance of making the Small Business Deduction permanent. NFIB Vice President of Federal Government Relations Kevin Kuhlman recently testified before the U.S. House Budget Committee, and NFIB Pennsylvania members David Cranston, Warren Hudak, and Georgia member Alison Couch have all shared their tax stories before Congressional committees.
A recent NFIB member ballot indicates widespread support for the extension of the Tax Cuts and Jobs Act, with 91% of NFIB members endorsing a permanent extension. According to NFIB’s 2021 tax survey, nearly half of small business owners (48%) reported that the uncertainty of expiring tax provisions is impacting their current or future business plans. Additionally, 81% of small business owners indicated that the Small Business Deduction is important in NFIB’s 2019 tax survey.
The Act’s passage would provide a significant reprieve to small businesses still grappling with the economic impacts of the COVID-19 pandemic. As such, the NFIB continues to rally for swift legislative action in support of small businesses nationwide.
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