Washington Wire
Setting the Record Straight on 199A
Critics of the Section 199A passthrough deduction are back in full swing. A recent release by Senate Finance Committee Ranking Member Ron Wyden (D-OR) claims the House-passed proposal to extend and modestly expand the 199A deduction “disproportionately benefits the rich.”
Senate and House tax-writers need to ignore the critics and support 199A, including the House proposal to increase the deduction to 23 percent. The Wyden release may generate headlines, but it doesn’t change the underlying …
(Read More)
Main Street Tax Relief Still Popular
Punchbowl News is out with a story on how the reconciliation bill before the Senate polls poorly. The DC media loves to throw shade at the BBB. Something that definitely polls well is extending the TCJA’s policies benefiting Main Street businesses.
As last month’s Winston Group poll found:
From the electorate’s perspective, government spending is by far the bigger problem than not enough revenue coming from taxes (70-21). Independent voters also see spending as the …
(Read More)
Avoiding Tax Hikes in the Big Beautiful Bill
The Main Street community needs the Big Beautiful Bill to succeed. Absent congressional action, taxes on pass-through businesses of all sizes will go up sharply. The same applies to most families. So the Main Street Employers Coalition supports efforts in both the House and the Senate to extend the sunsetting provisions from the Tax Cuts and Jobs Act.
Comparing the two approaches, the House bill is more friendly to small- and family-owned businesses. It increases …
(Read More)
Tax Notes Highlights House SALT Limitation
As we wrote recently, there’s lots to like about the House reconciliation package, but a dramatic expansion of B-SALT continues to give Main Street heartburn.
A new piece in Tax Notes lays out just how much pain the new regime would cause. Appropriately titled, “More SALTy Than Sweet?” the article beings:
Perhaps most importantly, the new SALT regime would allow for the continued viability of PTET regimes only in certain circumstances. However, PTET regimes would …
(Read More)
Oppose the Nancy Pelosi Tax Hike
There are a number of mysteries embedded in the House reconciliation bill, but number one among those is why the House is taking tax advice from former Speaker Nancy Pelosi.
Buried in the House bill is a provision championed by the former Speaker to treat the active losses of a pass-through worse than any other type of loss. The provision targets family businesses and would effectively preclude many of them from ever realizing these losses. …
(Read More)
In Defense of SALT Parity
House passage of the big reconciliation bill is a welcome development for the millions of Main Street job creators otherwise facing a massive tax hike next year. S-Corp enthusiastically supports the measure, but one question remains — why does a bill designed to prevent tax hikes on small and family-owned businesses raise taxes on many of those businesses instead?
To recap – the House-passed bill would limit SALT deductions for millions of pass-through business owners …
(Read More)
Pro Main Street Tax Bill Passes House
The House adopted the One Big Beautiful Bill Act (yes, that is the official title) by a vote of 215-214 this morning. This is good news for Main Street businesses, who have a lot at stake in this effort – failure by Congress to act would result in one of the larger tax hikes in history, so success is essential here.
Pro-Main Street provisions in the bill include making permanent the lower rates on pass-through …
(Read More)
Voters Support Main Street Tax Cuts
With the House preparing to consider the big reconciliation bill this week, our friends at the Winston Group have delivered some good news – turns out, the American voters support keeping taxes on Main Street businesses low and they think excess spending, not taxes, is the problem when it comes to the deficit.
According to the Winston Group:
From the electorate’s perspective, government spending is by far the bigger problem than not enough revenue coming from …
(Read More)