199A TCJA - The S Corporation Association

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 facts: Section 199A is one of the most effective tools to spur economic growth and job creation while helping level the playing field between Main …

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admin2025-06-24T14:38:29+00:00June 24, 2025|

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 larger problem at 68-20. Inflation is still a major concern, with almost half the electorate (49%) believing that inflation is getting worse, rather than better …

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admin2025-06-20T15:06:16+00:00June 20, 2025|

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 the Section 199A pass-through deduction to 23 percent and its disallowance of Pass-Through Entity Taxes (PTETs) is limited to Specified Service Trades or Businesses (SSTB) …

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admin2025-06-18T21:40:52+00:00June 18, 2025|

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 of so-called Specified Service Trade or Businesses (SSTBs), imposing an $80 billion tax hike on these businesses even as the C corporation down the street …

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admin2025-05-29T09:49:23+00:00May 29, 2025|

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 income, making permanent and expanding the 199A pass-through deduction, and making permanent and expanding the estate tax exemptions that benefit family businesses. The bill would …

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admin2025-05-22T17:40:11+00:00May 22, 2025|