Members of the Main Street Employers Coalition convened in South Bend, Indiana, today for a roundtable discussion with Congressman Rudy Yakym, who represents the state’s Second District and sits on the tax-writing Ways & Means Committee. The sole focus of the event was the Section 199A deduction, a provision that is central to tens of millions of Main Street businesses organized as pass-throughs.
Photo Credit: James Payne, NECA
The roundtable took place at the offices of electrical services provider Koontz-Wagner, a more than 100-year-old firm that is also a member of the National Electrical Contractors Association, which helped spearhead the effort. During the discussion, business owners from across the region shared their perspectives on how the Section 199A deduction has helped them reinvest in their businesses, hire more employees, and give back to their communities. Many attendees also emphasized that the deduction provides parity between pass-through entities and large, publicly-traded corporations, which benefit from significantly lower tax rates.
As we’ve said several times before, privately-held companies are the backbone of countless local economies nationwide, and the data backs this up. In Congressman Yakym’s district, pass-through businesses employ around 6 out of every 10 workers. That’s not an aberration, either. Nationwide, private companies are responsible for 62.3 percent of all private sector jobs.
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Congressman Yakym reaffirmed his commitment to fighting for Main Street businesses, highlighting the importance of making the Section 199A deduction permanent. He also acknowledged that the provision’s looming expiration – and the massive tax hike it represents – heightens the urgency when it comes to swift passage of a tax bill.
Fortunately, today’s roundtable shows that lawmakers are serious about preserving 199A and ensuring Main Street can continue to thrive and lift up the communities in which they operate. We thank Congressman Yakym for hosting this event and keeping the spotlight on 199A, and look forward to working with him to ensure a successful outcome.