Florida Senator Rick Scott, along with Senator Steve Daines, Majority Leader John Thune, and 32 other Republican senators, introduced the Main Street Tax Certainty Act on Monday, a bill aimed at making the 20 percent pass-through business tax deduction permanent. Without congressional action, the deduction is set to expire at the end of 2025, potentially hitting small businesses with a significant tax hike.
The 20 percent small business deduction, originally established under President Trump’s 2017 Tax Cuts and Jobs Act, was designed to level the playing field between small businesses and large corporations. If the provision is not extended, an estimated 9 out of 10 small businesses will face higher taxes, impacting jobs and economic growth.
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“During my time as Governor of Florida, I worked to cut taxes more than 100 times, helping businesses and families thrive,” said Senator Rick Scott. “President Trump is doing the same at the federal level. I’m proud to work with my colleagues on the Main Street Tax Certainty Act to deliver on President Trump’s agenda and continue supporting our small businesses, which are the backbone of our economy.”
The bill has garnered significant support from Republican lawmakers. Senator Steve Daines emphasized the importance of the legislation, stating, “It’s absolutely crucial to prevent a 20 percent tax increase for hardworking Americans, especially as they grapple with inflation. This bill provides vital support for Montana small businesses and millions of others across the country.”
Majority Leader John Thune added, “Small businesses drive growth and job creation in South Dakota and nationwide. This legislation is critical to ensuring that our farms, ranches, and small businesses don’t face a crippling tax hike in 2025.”
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According to a recent Ernst & Young study, the small business tax deduction supports 2.6 million jobs and contributes $325 billion to the U.S. GDP annually. Advocates argue that extending the deduction is essential for maintaining stability for small and family-owned businesses, which are key to the American economy.
Statements of support have poured in from prominent organizations, including the National Federation of Independent Business (NFIB) and the National Association of Manufacturers. Brad Close, NFIB President, stated, “This deduction allows nine out of 10 Main Street job creators to compete, grow, hire new employees, raise wages, and give back to their communities. Congress must act to stop this massive tax hike.”
The Main Street Tax Certainty Act seeks to:
- Make permanent the 20 percent deduction for pass-through businesses under Section 199A of the tax code.
- Support small businesses, which account for nearly 60 percent of net new jobs in the U.S.
- Provide financial stability and relief to family-owned businesses, farmers, ranchers, and contractors.
Chris Netram, Managing Vice President of Policy at the National Association of Manufacturers, called on Congress to preserve the deduction, stating, “This provision is crucial for manufacturers in America as they invest, create jobs, and drive the economy.”
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Brad Griffin, President of the Montana Retail Association, highlighted the pressures on small businesses, especially in hospitality and retail, saying, “If the pass-through deduction expires, a growing part of our local economy will be severely strained.”
The bill has the backing of over 230 trade associations nationwide, demonstrating widespread recognition of its importance. Senators John Barrasso (R-Wyo.), Joni Ernst (R-Iowa), Tim Scott (R-S.C.), and Ted Cruz (R-Texas), among others, have also signed on as co-sponsors, signaling strong momentum in the Senate.
The Republican senators are urging Congress to act swiftly to ensure that small businesses, which employ nearly half of all U.S. workers, are protected from looming tax hikes.
With inflation and rising costs weighing on small businesses, the Main Street Tax Certainty Act is poised to be a key legislative priority for Republicans in 2025. The bill’s supporters hope that making the tax deduction permanent will provide certainty and stability to millions of small businesses, ensuring they remain a cornerstone of the U.S. economy.
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