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199A Permanence Dominates Tax Hearing

The House Ways & Means Committee today kicked off the new Congress with a hearing focused on the family and business provisions included in the Tax Cuts and Jobs Act. But the topic that took center stage is one that’s near and dear to the hearts of millions of Main Street businesses nationwide – addressing the looming expiration of the Section 199A deduction.

The panel first heard testimony from Michelle Gallagher, an S-Corp Advisor and accountant with decades of experience serving individual and family-owned businesses (and who can be seen sporting our “I Love 199A pin!”).



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2025-01-14T21:33:21+00:00January 14, 2025|

Main Street 199A Resources

In the past, we’ve posted all the studies, data, and other information we’d compiled in support of the 199A deduction (here and here).

With Congress debating the deduction once more – Ways and Means hearing tomorrow! – we thought this would be a good time to repost all this work.  It demonstrates both the importance of the pass-through sector to the economy and the importance of Section 199A to the pass-through sector.

The Importance of 199A

Our recent study by EY’s Robert Carroll demonstrates how the 199A deduction is vital to Main Street parity. The key takeaway is summed

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2025-01-13T20:59:27+00:00January 13, 2025|

Big Beautiful Bill(s)

Only a couple of days into the new Congress and they’re ready to throw hands!

The Chairman’s frustration is justified. The obsession with process over policy is getting old. As Senator Bob Dole used to say, you should talk about your accomplishments, policies, and facts first.  If you don’t have any of those, then fall back on process. “You can always talk about process.” Focusing on process exclusively shifts attention away from the underlying policies and their real-world consequences for Main Street and elsewhere.

It’s also a waste of time.  At the

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2025-01-08T17:32:36+00:00January 8, 2025|

S-Corp Files CTA Amicus Brief

The S Corporation Association filed an Amicus brief yesterday in support of the nationwide injunction on enforcement of the Corporate Transparency Act.

With the filing deadline just days away, and millions of covered businesses not having yet filed, the importance of keeping this injunction in place cannot be overstated – a concern that is compounded by the fact that the 1-year delay provision moving through Congress is now stalled as lawmakers fight over the contents of the year-end spending bill.

Yesterday’s brief, filed on behalf of the S Corporation Association and the Private Investor Coalition, makes the case for keeping the

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2024-12-19T17:13:51+00:00December 19, 2024|

The Experts Are Wrong (Part 5)

Ways & Means Chairman Jason Smith recently told reporters that Section 199A permanence is at the top of his priority list. Yet some in the DC Tax Community continue to crusade against this provision that directly benefits the vast majority of businesses in this country.

A good example is a recent Tax Notes panel on the 2025 tax outlook.  During a discussion on Section 199A, Bill Gale of the Brookings Institute commented:

I mean, it’s well known to be expensive, to be extremely regressive, and not to have had anywhere near the desired impact on either investment or hiring etc.

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2024-12-09T19:49:50+00:00December 9, 2024|