The ADA and a coalition of business groups thanked two federal lawmakers for introducing the Main Street Tax Certainty Act of 2023, legislation that would make permanent the 20-percent deduction for small- and individually-owned businesses.
In a July 6 letter addressed to Sen. Steve Daines (R-Mon.) and Rep. Lloyd Smucker (R-Penn.), the coalition said the legislation would provide certainty to the millions of S- corporations, partnerships and sole proprietorships that rely on the deduction to remain competitive both here and overseas.
“Individually- and family-owned businesses organized as pass-throughs are the backbone of the American economy,” according to the letter. “They employ the majority of private-sector workers and account for 95 percent of all businesses. They also make up the economic and social foundation for countless communities nationwide. Without these businesses and the jobs they provide, many communities would face a more uncertain future of lower growth, fewer jobs and more boarded-up buildings.”
The coalition noted that the deduction is scheduled to sunset at the end of 2025.
“Making the ... deduction permanent will help Main Street during this very difficult time, leading to higher economic growth and more employment,” wrote the coalition. “The more quickly Congress acts to make [the deduction] permanent, the sooner Main Street businesses will benefit. We appreciate your introduction of this important legislation and look forward to seeing it enacted.”
Follow the ADA’s advocacy efforts at ADA.org/advocacy.