Yesterday, S-Corp and its Main Street allies headed to southern Pennsylvania for a Tax Team event hosted by Representative Lloyd Smucker. Smucker represents the state’s eleventh congressional district and also serves as the Chair of the Main Street Tax Team. Yesterday’s event was part of the process initiated by Ways & Means Chairman Jason Smith (R-MO) to create various Tax Teams tasked with identifying legislative solutions to avert the 2025 fiscal cliff.
Attended by several dozen local business owners, congressional staff, press, and national trade association representatives, the event kicked off with a walking tour that highlighted several Main Street businesses in the neighboring towns of Shrewsbury and New Freedom.
Participants then gathered for a roundtable discussion at the offices of Crescent Industries, an injection-molded plastics manufacturer. The ensuing discussion covered the critical topic that’s top of mind for millions of Main Street businesses nationwide – the looming expiration of the Section 199A deduction and the importance of making the provision a permanent fixture of the tax code.
Congressman Smucker and his colleague Mike Kelly (R-PA) heard from business owners representing a wide range of industries, including a dairy farmer, hair salon owner, medical device manufacturer, etc. – who all emphasized what the deduction means for their businesses and how it’s helped them invest in their communities.
Thursday’s event is yet another reminder that privately-held companies are the backbone of local communities nationwide. As our EY study shows, small and family-owned businesses organized as pass-throughs supply nearly two-thirds of all jobs in Congressman Smucker’s 11th district.
Despite the outsized role they play in job creation and investment, these businesses face a massive tax hike at the end of 2025 when Section 199A is scheduled to sunset. Meanwhile, publicly-traded corporations – who supply just 11 percent of the jobs in the district – will continue to pay far lower rates.
As the lead sponsor of the 199A permanence bill and chair of the Main Street Tax Team, the business community appreciates the leadership Congressman Smucker provides on this critical issue. S-Corp is grateful to the Congressman and his staff for putting together a fantastic event and we look forward to working with the Congressman to see 199A made permanent next year.