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Chairman Smith Quashes Tax Hike Rumors

Missouri Congressman Jason Smith, who heads up the tax-writing Ways & Means Committee, was on Mornings with Maria yesterday to talk all things tax policy. The Chairman was asked about a so-called “millionaire tax,” and his response should give comfort to millions of Main Street businesses that would see their taxes increased under the ill-conceived proposal.

Here’s the key excerpt:

What has been discussed by news media – not within Congress but by news media – is that we might increase the top tax rate. What I’ve said all along is that

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2025-04-22T16:08:11+00:00April 22, 2025|

More Pushback on Rate Hikes

The Main Street Employers coalition organized a letter calling on tax-writers to reject rate hikes last week. More than 90 trades, including all our Main Street friends, signed on.

That effort caught the attention of Americans for Tax Reform’s Grover Norquist, who flagged it in a recent media appearance.

President Trump is not going to allow the top rate for income taxes to be increased. That is a direct hit on small businesses. There was a letter that went to the Hill from 90 trade associations that represent small businesses pointing

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2025-04-16T20:22:42+00:00April 16, 2025|

199A Deficit Account Relief

The House last week signed off on a Senate-approved budget resolution that uses a “current policy baseline” method of tallying up the bill’s deficit impact. One quirk of this approach is any existing policies must not be simply renewed but would need to include a substantive change from current law. That means lawmakers using a current policy baseline will need to make tweaks to the Section 199A deduction to stay compliant.

Luckily, we have a Main Street-friendly adjustment that would satisfy this requirement while benefiting millions of pass-through businesses.

Section 199A(c)(2) bars a pass-through business from claiming the 199A deduction until

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2025-04-15T14:29:05+00:00April 15, 2025|

Putting the Tax Hike Debate to Rest

The House yesterday cleared a major hurdle in the effort to move a broad tax package when lawmakers signed off on a Senate-passed budget resolution. With the broad parameters of that legislation in place, Main Street is speaking out against an ill-conceived tax hike proposal. A letter signed by more than 90 trade associations reads:

The so-called “millionaire tax” in question – which actually kicks in at income around $620,000 – would saddle them with a tax hike that offsets about half the tax benefit of extending the Section 199A deduction. Coupled with the Net Investment Income Tax and state

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2025-04-11T15:41:33+00:00April 11, 2025|

Getting Back to Tax Policy

With this morning’s passage of the budget resolution in the House, it’s full steam ahead on the tax policy front. Fortunately, our friends on the small business committees are focused on what’s important – Congress needs to act now to prevent a massive tax hike on millions of Main Street businesses.

That focus was on full display during a House and Senate joint hearing entitled, “Keeping Taxes Low for Small Businesses” which featured two witnesses from our Main Street Employers Coalition.

Here’s Tom Click – president and cofounder of Patriot Industries,

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2025-04-10T16:50:16+00:00April 10, 2025|