WASHINGTON - U.S. Senators Jim Risch (R-Idaho) and Steve Daines (R-Mont.) introduced the Main Street Tax Certainty Act to permanently extend the 20 percent tax deduction for pass-through businesses. Should these tax cuts expire, small businesses will face an immediate and massive tax hike.
“Inflicting a 20% tax increase on Idaho’s small businesses would be damaging to our economy and local communities,” said Risch. “The Main Street Tax Certainty Actensures these establishments remain the driving force Idaho’s economy and thrive for generations to come.”
“As the son of a contractor, I’ve seen firsthand the hard work it takes to keep a small business flourishing- especially as Americans are still grappling with the effects of Joe Biden’s inflation. It’s absolutely crucial that we pass this legislation to prevent a 20 percent tax increase for hardworking Montanans and I’ll keep fighting for ways to support Montana small businesses, which provide the majority of jobs in our state,” said Daines.
The 20% small business deduction was created as a part of President Trump’s 2017 tax cuts to level the playing field between small businesses and large corporations. Without Congressional action, 9 out of 10 small businesses will be hit with a massive tax hike when this deduction is set to expire at the end of 2025.
Senators John Thune (R-S.D.), John Barrasso (R-Wyo.), Shelley Moore Capito (R-W.V.), James Lankford (R-Okla.), Joni Ernst (R-Iowa), Tom Cotton (R-Ark.), Tim Scott (R-S.C.), Chuck Grassley (R-Iowa), Kevin Cramer (R-N.D.), Jerry Moran (R-Kan.), Marsha Blackburn (R-Tenn.), Mike Rounds (R-S.D.), Pete Ricketts (R-Neb.), Katie Britt (R-Ala.), Eric Schmitt (R-Mo.), Roger Wicker (R-Miss.), Cynthia Lummis (R-Wyo.), Cindy Hyde-Smith (R-Miss.), Tommy Tuberville (R-Ala.), Ted Cruz (R-Texas), John Hoeven (R-N.D.), Thom Tillis (R-N.C.), Roger Marshall (R-Kan.), Jim Justice (R-W.V.), Tim Sheehy (R-Mont.), Deb Fischer (R-Neb.), Bill Cassidy (R-La.), Ted Budd (R-N.C.), Rick Scott (R-Fla.), Bill Hagerty (R-Tenn.), Todd Young (R-Ind.), John Kennedy (R-La.) and Jim Banks (R-Ind.) joined Risch and Daines in introducing the legislation.
Recently, a new study from Ernst and Young (EY) highlighted the economic activity supported by this small and family-owned business tax deduction, including 2.6 million jobs and $325 billion of the GDP.?
