May 18, 2023
Dear Senator Daines:
The undersigned business groups strongly support the introduction of your Main Street Tax Certainty Act of 2023, legislation to make permanent the 20-percent deduction for small- and individually-owned businesses (Section 199A).
Your legislation would provide certainty to the millions of S corporations, partnerships and sole proprietorships that rely on the Section 199A deduction to remain competitive both here and overseas.
Individually- and family-owned businesses organized as pass-throughs are the backbone of the American economy. They employ the majority of private-sector workers and represent 95 percent of all businesses. They also make up the economic and social foundation for countless communities nationwide. Without these businesses and the jobs they provide, many communities would face a more uncertain future of lower growth, fewer jobs, and more boarded-up buildings.
Despite this, Section 199A is scheduled to sunset at the end of 2025, even as the businesses it supports continue to recover from the COVID-19 pandemic and the price hikes, labor shortages, and supply chain disruptions that followed.
Making the Section 199A deduction permanent will help Main Street during this very difficult time, leading to higher economic growth and more employment. Separate studies by economists Barro and Furman, the American Action Forum, and DeBacker and Kasher found that making the pass-through deduction permanent would result in significantly improved parity and lower rates for Main Street businesses.
The more quickly Congress acts to make Section 199A permanent, the sooner Main Street businesses will benefit. We appreciate your introduction of this important legislation and look forward to seeing it enacted.
Agricultural Retailers Association AICC, The Independent Packaging Association Air Conditioning Contractors of America Air Conditioning Contractors of America (ACCA) American Bakers Association American Building Materials Alliance (ABMA) American Council of Engineering Companies American Farm Bureau Federation American Foundry Society American Hotel & Lodging Association American Institute of Architects American Lighting Association American Mold Builders Association American Petroleum Institute American Pipeline Contractors Association American Staffing Association American Subcontractors Association American Supply Association American Trucking Associations American Veterinary Medical Association Associated Builders and Contractors Associated Equipment Distributors Associated General Contractors of America Automotive Service Association CCIM Institute Construction Industry Round Table Convenience Distribution Association Distribution Contractors Association Education Market Association Energy Marketers of America Ewing Irrigation Products, Inc.
Finseca FMI – the Food Industry Association Foodservice Equipment Distributors Association Forest Resources Association Forging Industry Association Glass Packaging Institute Global Cold Chain Alliance Hearth, Patio & Barbecue Association Heating, Air-conditioning, & Refrigeration Distributors International ICSC Illinois Farm Bureau Independent Baker Association Independent Bakers Association Independent Community Bankers of America Independent Electrical Contractors Independent Insurance Agents & Brokers of America (Big “I”) Industrial Fasteners Institute Institute of Real Estate Management Institute of Scrap Recycling Industries Inc., International Foodservice Distribution Association International Franchise Association International Fresh Produce Association International Housewares Association International Sign Association Job Creators Network Livestock Marketing Association Main Street Employers Coalition Manufactured Housing Institute Manufacturer & Business Association Mortgage Bankers Association NAIOP, the Commercial Real Estate Development Association Nareit National Apartment Association National Association of Benefits and Insurance Professionals National Association of Convenience Stores National Association of Electrical Distributors National Association of Home Builders National Association of Insurance and Financial Advisors National Association of Professional Insurance Agents NATIONAL ASSOCIATION OF REALTORS® National Association of Sporting Goods Wholesalers National Association of Wholesaler-Distributors National Automatic Merchandising Association (NAMA) National Automobile Dealers Association National Beer Wholesalers Association National Cattlemen’s Beef Association National Council of Agricultural Employers National Council of Farmer Cooperatives National Electrical Contractors Association NATIONAL ELECTRICAL MANUFACTURERS REPRESENTATIVES ASSOCIATION (NEMRA) National Federation of Independent Business (NFIB) National Funeral Directors Association National Grocers Association National Insulation Association National Lumber & Building Material Dealers Association National Marine Distributors Association National Multifamily Housing Council National Onion Association National Pecan Federation National Pork Producers Council National Ready Mixed Concrete Association National Restaurant Association National Roofing Contractors Association National RV Dealers Association (RVDA) National Small Business Association National Stone, Sand, & Gravel Association National Tooling and Machining Association National Utility Contractors Association National Waste & Recycling Association National Wooden Pallet & Container Association New York Farm Bureau North American Association of Food Equipment Manufacturers (NAFEM) North American Die Casting Association North American Equipment Dealers Association Oregon Cattlemen’s Association Outdoor Power Equipment and Engine Service Association Pennsylvania Farm Bureau Performance Racing Industry (PRI) Pet Industry Distributors Association Petroleum Equipment Institute Plumbing-Heating-Cooling Contractors–National Association Power and Communication Contractors Association Precision Machined Products Association Precision Metalforming Association PRINTING United Alliance Professional Beauty Association Reserve Organization of America (ROA) Retail Bakers of America S Corporation Association Service Station Dealers of America and Allied Trades (SSDA-AT) Small Business & Entrepreneurship Council Society of American Florists Society of Collision Repair Specialists (SCRS) Specialty Equipment Market Association (SEMA) Structural Insulated Panel Assn. (SIPA) Subchapter S Bank Association Texas Farm Bureau Textile Care Allied Trades Association The Association for Hose and Accessories Distribution The Council of Insurance Agents and Brokers The Hardwood Federation The Real Estate Roundtable Tile Roofing Industry Alliance Tire Industry Association (TIA) Truck Renting and Leasing Association U.S. Peanut Federation Water and Sewer Distributors of America Water and Sewer Distributors of America (WASDA) Wholesale Florist & Florist Supplier Association Wine & Spirits Wholesalers of America Wine Institute Wisconsin Grocers Association Wyoming Farm Bureau Federation Wyoming Stock Growers Association