Tax Policy - The S Corporation Association

Horizontal Equity and Section 199A

Thanks to the OB3, Section 199A is now a permanent fixture of the Tax Code. Millions of small and family-owned businesses can now stop worrying about their taxes and refocus on growing and hiring. It’s a good thing that means more investment and jobs on Main Street.

That doesn’t mean the debate is over, however.

A Congressional Research Service (CRS) report, for example, included a nice overview of the provision, but also made a point about horizontal equity we’ve seen previously:

The deduction may diminish horizontal tax equity in two ways. First, it taxes wage earners and pass-through business owners …

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admin2025-08-15T13:40:54+00:00August 15, 2025|

SALT Parity 2.0

One BIG Main Street win in the One Big Beautiful Bill (OB3) was what didn’t happen: Congress rejected ill-considered proposals in both the House and Senate drafts to limit pass-through entity (PTET) deductions for state and local taxes (SALT).

That was huge for many reasons, but primarily because the C corporation down the street continues to fully deduct their SALT. In what rational world is Home Depot allowed to deduct its SALT, but your local hardware store is not?

In place of limiting PTET deduction, Congress instead voted to temporarily raise the individual SALT cap from $10,000 to $40,000. What …

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admin2025-08-01T13:50:11+00:00August 1, 2025|

Webinar Recap: OBBB Resonates with Voters

Earlier today, S-CORP hosted a webinar featuring David Winston and Myra Miller of The Winston Group, longtime experts in measuring voter attitudes on tax policy. The focus was the One Big Beautiful Bill and its Main Street tax provisions, which are not only good policy but also extremely popular with voters.

So how popular are these provisions?

Very. The Winston Group’s research shows broad, bipartisan support across key items in the bill. For example, Section 199A continues to enjoy strong favorability, with 60 percent of voters supporting the deduction outright, and even stronger support when they learn how it helps …

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admin2025-07-24T21:24:44+00:00July 24, 2025|

What’s Next for 199A?

Enactment of the Big Beautiful Bill was a big beautiful win for Main Street – making permanent the lower tax rates, 20-percent deduction for small and family-owned businesses, and the higher estate tax exemptions. All these provisions help pass-through businesses compete with their larger, publicly-owned competition and they help to protect the 2.6 million jobs that depend on the 199A deduction.

With the bill signed into law, what’s next? This from Bloomberg:

“Everyone’s been coming off the momentum, because we’ve had a lot of wins, and so I think that’s what’s been pushing this idea that we’re going to maybe …

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admin2025-07-17T19:27:09+00:00July 17, 2025|

199A on the Line as House Prepares to Vote

With the House preparing to vote as early as today on the Senate-passed reconciliation bill, any lawmakers still undecided should take a close look at what’s at stake for Main Street businesses across the country. Absent congressional action, these businesses will be hit with an unprecedented tax hike, putting millions of jobs and billions in wages and economic growth at risk.

The urgency here stems from the looming expiration of the Section 199A deduction, which sunsets at the end of this year. We’ve done a number of studies in the past showing the benefits of 199A when it comes to …

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admin2025-07-02T16:17:58+00:00July 2, 2025|