Latest update on all the studies, data, and other information S-Corp has compiled in support of the 199A deduction – including the new CRS METR estimates we posted on Monday. The materials below span more than a decade of work and highlight the central role the pass-through sector plays in the American economy, and the importance of the Section 199A deduction to these businesses.

Rate Analysis Tells the Full Story

The Congressional Research Service is out with a new study that demonstrates precisely why Section 199A permanence needs to be part of the 2025 tax package. The chart below explains why:

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As Congress puts together the big tax bill, CRS just produced another reminder of why making the Section 199A pass-through deduction permanent needs to be part of the package. This chart says it all:

The rates reflected here are important because they measure the overall tax burden imposed on new investment. As CRS notes: “The marginal effective tax rate (METR) is a forward-looking measure that estimates… the share of the rate of return on a prospective investment that is paid in taxes over the life of that investment.”

So under current law, …

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The Main Street business community has come out in strong support of the House Budget Resolution scheduled to be considered this week.  The simple reality is there will be no tax bill unless Congress adopts a budget that calls for one.  As Karen Kerrigan noted in her letter to House leaders:

This must be a priority for Congress…passing the budget resolution is a vital first step toward that end. Renewing expiring small business provisions in the TCJA such as the 20% small business deduction, lower individual income tax rates, higher threshold exemptions on death taxes, and restoring incentives such as …

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