08/23/2024
What is the Main Street Tax Certainty Act?
In just 500 days, the 20% Small Business Deduction is scheduled to end, which could result in a major tax hike for more than 90% of small business owners unless Congress steps in. Although 500 days might seem far off, we’re already seeing the effects of this looming tax increase on the confidence and planning of small business owners.
A recent survey highlighted the top 75 challenges facing small businesses, with "Uncertainty over economic conditions" ranked 3rd, "Federal taxes on business income" at 4th, and "Uncertainty over government actions" at 8th.
The findings reveal that small business owners are facing significant uncertainty, particularly with the potential for a large tax increase on the horizon. This upcoming tax change could worsen the already serious issue of federal taxes on business income. Congress can bring much-needed clarity by passing the Main Street Tax Certainty Act (H.R. 4721, S. 1706), which would make the 20% Small Business Deduction a permanent fixture.
Originally created as part of the 2017 tax law, the 20% Small Business Deduction was designed to level the playing field between small businesses and large corporations. It has played a crucial role in helping small businesses weather recent economic challenges, but it’s set to expire at the end of 2025. The Main Street Tax Certainty Act would make this deduction permanent, preventing a significant tax increase for the majority of small businesses across the country.
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