WASHINGTON, D.C. – Rep. Peter Meijer (R-MI) recently joined his colleagues in supporting the Main Street Tax Certainty Act, a bill that will support small businesses, create jobs, and strengthen the economy. This bipartisan, bicameral legislation would make the 20 percent pass-through small business tax deduction permanent. Currently, the tax deduction is set to expire at the end of 2025.
“Small businesses across West Michigan play such a critical role in our communities and our economies, and we must do everything we can to ensure their prosperity,” said Rep. Meijer. “I’m proud to support this bipartisan, bicameral legislation that is critical to the longevity and vitalization of our main street businesses and communities.”
Hear what West Michigan Small Businesses have to say:
“The pass-through small business tax deduction has been valuable in managing expenses over the past few years, particularly as the pandemic brought a new level of uncertainty to our balance sheets. I am grateful for nonpartisan efforts to provide long-term support for small businesses.”– Adam Russo, Owner of COM 616 Public Relations
“Small business owners will benefit from Congress making the Main Street Tax break permanent, as it will keep cash in the business to help hire people, create more jobs, and grow.” – Javier Olvera, Supermercado Mexico, President and Co-Owner of Olvera Enterprises
"Entrepreneur's like myself would greatly benefit from the small business tax deduction; it would assure that more of our hard-earned money is retained and re-invested in our business." –Ruben Ramos, R&R Mechanical Services, LLC
Background:
The legislation ensures that millions of Main Street businesses continue to maintain tax parity with large corporations. Section 199A, enacted as part of the 2017 Tax Cuts and Jobs Act, allows certain pass-through businesses to deduct up to 20 percent of certain income.
The section 199A deduction is available to eligible taxpayers with qualified business income (QBI) from qualified trades or businesses operated as sole proprietorships or through partnerships, S corporations, trusts, or estates, as well as for qualified REIT dividends and income from publicly traded partnerships. The section 199A deduction is not available for C corporations.
The bill has received significant support from over 80 stakeholder groups, including the 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.
Original source can be found here.
