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On Jan. 17, ABC sent a letter to the U.S. House of Representatives Ways and Means Committee emphasizing the significance of making permanent the provisions of the Tax Cuts and Jobs Act for America’s working families as the committee held a hearing focused on the family and business provisions included in the Tax Cuts and Jobs Act.
In the letter, ABC urged the committee to support the following critical tax policies, which are vital to the continued success and economic prosperity of our industry:
In the hearing, there was increased focus on addressing the looming expiration of the Section 199A deduction, which, if allowed to expire, would result in a 20% increased tax on pass-throughs, while C-corps and publicly traded companies will continue to enjoy their lower, 21% permanent rate.
Chairman Jason Smith, R-Mo.:
“Small businesses are facing a 43.4% tax rate if the 199A small business deduction, as I refer to it, expires. This looming threat impacts decisions they’re making today about whether to invest, grow, hire.”
Rep. Vern Buchannan, R-Fla.:
“As chairman of the Florida Chamber, I can tell you we had 130,000 businesses, 90% to 95% of them were pass-through entities. And you’re dealing with these potential tax hikes, that’s what scares a lot of people.”
Rep. Kevin Hern, R-Okla.:
“Certainty is important. And we’re getting ready to see the largest tax increase in American history starting January 2026 if we don’t do something. … [Section] 199A, it puts parity between small business pass-throughs and C corporations, and 99% of businesses in America are pass-throughs. Are there some larger than others? Absolutely. Are we going to be punitive to those who have fought and grown their businesses as I did, from one person to 1,200 employees? Are we evil because we created jobs?”
Rep. Beth Van Duyne, R-Texas, referencing the 199A roundtable ABC participated in last year:
“As part of my work on the Main Street Tax Team, we were able to get out of D.C. and talk to real business owners. We heard about the successes of policies such as Section 199A, which created over $66 billion in savings for Main Street businesses. One of the businesses I met with was Republic National Distributing Co., where I held a roundtable including 25 small businesses, including roofers, community banks and realtors. These are the businesses across the United States who are benefiting from this, and this is why Congress must act.”
ABC will continue to advocate for the extension of the pro-growth policies of the Tax Cuts and Jobs Act, as lawmakers consider legislative action in the 119th Congress.