U.S. Senator Katie Britt, R-Ala., joined U.S. Senator Steve Daines, R-Mont., and a group of 12 Republican colleagues to introduce the Main Street Tax Certainty Act, which will make the pass-through business tax deduction for small businesses permanent.
Originally passed as part of the Tax Cuts and Jobs Act in 2017, this deduction allows pass-through businesses, entities small enough not to qualify for the corporate income tax, to deduct up to 20 percent of qualifying income. Pass-through businesses represent 98 percent of all American businesses and employ nearly half of the country’s workforce. The current deduction is set to expire in 2025, which would effectively equate to a significant tax hike on the nation’s small businesses.
“Small businesses are still desperately trying to survive amid persistently high inflation and the Biden Administration’s insistence on imposing its reckless tax-and-spend agenda on hardworking Americans,” said Senator Katie Britt. “The last thing small businesses can afford right now is a massive tax hike looming over them. To ensure that every Alabamian has the opportunity to live the American Dream, we must slash the burdens on small businesses, from entrepreneurs just starting out to the established, family-owned shops on local Main Streets across our great state and nation. I will continue to fight tirelessly for Alabama small businesses and the families they support.”
In addition to Senators Britt and Daines, this legislation is co-sponsored by Senate Republican Conference Chair John Barrasso , R-Wyo., and U.S. Senators Marsha Blackburn, R-Tenn., Jim Risch, R-Idaho, Bill Cassidy, R-La., Roger Marshall, R-Kans., Mike Braun, R-Ind., Bill Hagerty, R-Tenn., Chuck Grassley, R-Iowa, Tim Scott, R-S.C., Ted Cruz, R-Texas, Roger Wicker, R-Miss., and Kevin Cramer, R-N.D.
This legislation is supported by more than 130 stakeholder groups, including the National Association of Manufacturers, National Federation of Independent Business (NFIB), the American Farm Bureau Federation, and the Independent Community Bankers Association of America.