“More than 230,000 small businesses in Louisiana will face tax hikes if the deductions we passed in the Tax Cuts and Jobs Act expire. The Main Street Tax Certainty Act will help make sure that the backbone of America’s economy continues to provide good-paying jobs to our communities.”
Sen. John Kennedy (R-La.), a member of the Senate Banking Committee, today joined Sen. Steve Daines (R-Mont.) in introducing the Main Street Tax Certainty Act to make permanent the Tax Cuts and Jobs Act 199A deductions for small businesses.
“More than 230,000 small businesses in Louisiana will face tax hikes if the deductions we passed in the Tax Cuts and Jobs Act expire. The Main Street Tax Certainty Act will help make sure that the backbone of America’s economy continues to provide good-paying jobs to our communities,” said Kennedy.
“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.
In 2017, the Tax Cuts and Jobs Act became law. The law, under section 199A, provides a special tax deduction for millions of America’s small businesses. The 199A deductions are set to expire on Dec. 31, 2025 unless Congress acts.
Most businesses in the U.S. are considered “pass-through,” which means their income flows through the business onto the owners or members. These profits are taxed as individual income rather than at the corporate rate. The Main Street Tax Certainty Act would permanently provide a 20% tax deduction for pass-through businesses, including sole-proprietorships, S-Corporations, partnerships and limited liability corporations.
Sens. John Thune (R-S.D.), John Barrasso (R-Wyo.), Shelley Moore Capito (R-W.Va.), 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.), Jim Risch (R-Idaho), 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.Va.), 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.) and Jim Banks (R-Ind.) also cosponsored the legislation.
The full text of the legislation is available here.