WASHINGTON – With key portions of President Trump’s Tax Cuts and Jobs Act expiring at the end of 2025, lawmakers are fighting to ensure small businesses will not face a massive tax hike.
U.S. Sen. Katie Britt joined Majority Leader John Thune (R-S.D.) and 33 Republican senators in introducing the Main Street Tax Certainty Act to make permanent the 20% pass-through tax deduction for small businesses.
“In Alabama, 99.4% of all businesses are small businesses,” said Britt (R-Montgomery). “The Main Street Tax Certainty Act would alleviate unnecessary burdens on our hardworking small business owners by permanently extending President Trump’s 2017 tax deduction.
“From entrepreneurs just starting out to the established, family-owned shops on Main Streets across our great state and nation, I will continue to fight tirelessly for small businesses and the families they support.”
The 20% small business deduction, section 199A, was created as part of Trump’s landmark 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 higher than most large corporations.
Recently, a new study from Ernst and Young 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. Read the full text of the Main Street Tax Certainty Act here.
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