Home/199A TCJA

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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2025-06-18T21:40:52+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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2025-05-29T09:49:23+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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2025-05-22T17:40:11+00:00May 22, 2025|

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 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%)

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2025-05-19T16:09:58+00:00May 19, 2025|

Tax Nerds Gone Wild

Main Street supports the tax bill adopted by the Ways and Means Committee this week, but not all the bill’s provisions are worth keeping. The House provision limiting SALT deductions on pass-throughs is a good example of why the “experts” need close supervision.  These provisions are hopelessly complicated and will hurt members of the very Main Street business community this bill is supposed to help.

First, some history. The TCJA imposed a new $10,000 cap on individual SALT deductions. It did not cap the SALT deductions of business entities, so corporate SALT (C-SALT) and any SALT paid by pass-through entities

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2025-05-18T13:45:34+00:00May 15, 2025|