Jefferson Reporter

U.S. Senators Katie Britt of Alabama and Steve Daines of Montana have joined forces with Majority Leader John Thune and 32 other Republican Senators to introduce the Main Street Tax Certainty Act. This legislation aims to make permanent the 20 percent pass-through tax deduction for small businesses, a key component of President Trump's Tax Cuts and Jobs Act set to expire at the end of 2025.

"In Alabama, 99.4% of all businesses are small businesses. The Main Street Tax Certainty Act would alleviate unnecessary burdens on our hardworking small business owners by permanently extending President Trump’s 2017 tax deduction," stated Senator Britt. She emphasized her commitment to supporting entrepreneurs and family-owned shops across the nation.

The deduction, part of section 199A, was originally created in 2017 to balance the tax field between small businesses and larger corporations. Without legislative action, nine out of ten small businesses could face a significant tax increase that surpasses what most large corporations pay.

Senator Daines remarked on his personal connection to small business challenges: "As the son of a contractor, I’ve seen firsthand the hard work it takes to keep a small business flourishing- especially as Americans are still grappling with the effects of Joe Biden’s inflation." He underscored the importance of passing this legislation to prevent a substantial tax hike for Montanans.

A recent study by Ernst and Young highlighted that this deduction supports significant economic activity, including 2.6 million jobs and $325 billion in GDP contributions.

Senator Britt has consistently advocated for small businesses, opposing federal financial regulations she deems harmful to them. Besides supporting this act in Congress, she has pushed for delaying Basel III Endgame rule finalization due to its potential negative impacts on smaller enterprises.

In addition, during her tenure in Congress, Senator Britt introduced the Small Entity Update Act aimed at providing regulatory relief for these businesses. This proposal was included in then-Banking Committee Ranking Member Tim Scott's legislative package known as the Empowering Main Street in America Act.