Washington D.C. – U.S. Senators Katie Britt (R-Ala.) and Steve Daines (R-Mont.), alongside Majority Whip John Thune (R-S.D.) and 32 other Republican senators, have introduced the Main Street Tax Certainty Act, aiming to make permanent the 20 percent pass-through tax deduction for small businesses. The legislation seeks to extend provisions from the 2017 Tax Cuts and Jobs Act, which are set to expire at the end of 2025.
Senator Britt emphasized the significance of the bill for Alabama’s economy, noting that “99.4% of all businesses in Alabama are small businesses.” She described the legislation as a measure to “alleviate unnecessary burdens” and ensure continued support for business owners across the state and nation.
The 20 percent deduction, established under section 199A of the tax code, was designed to provide relief to small businesses competing with larger corporations. Without legislative intervention, many businesses could face tax increases higher than those imposed on major corporations.
Senator Daines underscored the importance of maintaining the deduction, particularly amid economic challenges. “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,” he stated.
A recent Ernst & Young study highlighted the deduction’s economic impact, reporting that it supports 2.6 million jobs and contributes $325 billion to the U.S. GDP.
Senator Britt has been an advocate for small businesses beyond tax policy, voicing concerns over federal financial regulations that she argues could negatively impact local businesses. She has also supported other legislative measures, including the Small Entity Update Act, which was incorporated into Senator Tim Scott’s (R-S.C.) Empowering Main Street in America Act, aimed at reducing regulatory burdens.
The Main Street Tax Certainty Act now awaits further discussion in Congress, where lawmakers will debate its potential impact on small businesses and the broader economy.
