Source: United States Senator for Wyoming John Barrasso
CASPER, WY – U.S. Senator John Barrasso (R-Wyo.) joined U.S. Senator Steve Daines (R-Mont.), in introducing legislation to make tax relief for small businesses permanent.
The Main Street Tax Certainty Act will support small businesses, help create jobs, and strengthen our economy. The tax is set to expire at the end of 2025 if Congress does not act to make it permanent.
“Small businesses are the backbone of Wyoming’s economy. Burdensome tax regulations make it harder for owners to grow their business and create more job opportunities,” said Senator Barrasso. “Providing this much-needed tax relief will give small businesses certainty and avoid massive tax hikes that threaten the future of these businesses.”
This legislation is co-sponsored by U.S. Senators Marsha Blackburn (Tenn.), Jim Risch (Idaho), Bill Cassidy (La.), Roger Marshall (Kan.), Katie Britt (Ala.), Mike Braun (Ind.), Bill Hagerty (Tenn.), Chuck Grassley (Iowa), Tim Scott (S.C.), Ted Cruz (Texas), Roger Wicker (Miss.) and Kevin Cramer (N.D.).
Background:
• Pass-through businesses represent 98 percent of all businesses and employ approximately 50 percent of American workers. The Main Street Tax Certainty Act would help grow the economy and provide much needed certainty for small business job creators by making permanent the 20 percent pass-through deduction. Absent congressional action, these businesses will face a massive tax hike and will 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 deduction is currently slated to expire at the end of 2025. Through making this deduction permanent, this legislation ensures that millions of Main Street businesses continue to maintain tax parity with large corporations.
• The bill has received significant support from over 130 stakeholder groups, including the National Association of Manufacturing, S Corporation Association, National Federation of Independent Business (NFIB), the American Farm Bureau Federation, the National Association of Professional Insurance Agents (PIA), the Independent Community Bankers Association of America and the National Beer Wholesalers Association.
Full text of the legislation can be found here.
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