The Parity for Main Street Employers coalition today wrote the Ways and Means Committee in support of making the 199A pass-through deduction permanent. The provision is part of the Committee’s “Tax Reform 2.0” effort being debated by the Committee.
Making the Section 199A permanent is a key part of the PMSE coalition agenda in the coming years, and a critical component of making sure the tax reform effort as successful as possible. As the letter says:
The American economy is growing at a remarkable pace, thanks in large part to tax reform and its focus on reducing taxes on employers and employees alike. But continuation of this growth is at risk because the centerpiece of tax relief for Main Street – the 20 percent pass-through deduction – is temporary and is scheduled to expire in a few years. Business needs certainty to plan and grow.
The 20 percent pass-through deduction is critical for the success of Main Street employers. Businesses organized as S corporations, partnerships and sole proprietorships comprise 95% of American companies, employ the majority of American workers, and are a vital part of the American economy. Making this deduction permanent will help put these businesses on a more level playing field with publicly trade C corporations and help them to fully contribute to economic expansion.
You can read the full letter here.