The Foodservice Equipment Distributors Association (FEDA) has signed a letter urging adoption of the Main Street Tax Certainty Act.
The letter from the S Corporation Association calls for legislators to support the act, which would make permanent the Section 199A 20% deduction for qualified business income.
The deductions will otherwise sunset at the end of 2025.
The act is led by Reps. John Smith (R-MO) and Henry Cuellar (D-TX) in the House of Representatives and Sens. Steve Daines (R-MT), Bill Cassidy (R-LA), Tim Scott (R-LA), and Rob Portman (R-OH) in the Senate.
“This bipartisan legislation will help ensure permanent tax parity for the millions of employers organized as S corporations, partnerships and sole proprietorships,” the letter states.
“It will also provide certainty to the countless businesses who have been devastated by the Covid-19 pandemic.”
Individual and family-owned businesses represent 95% of all businesses in the United States and employ the majority of private-sector workers.
Making the 199A deduction permanent will help millions of these pass-through businesses recover from the Covid-19 pandemic, leading to higher economic growth and more employment, the letter says.
The S Corporation Association will send the letter to Sens. Ron Wyden (D-OR) and Mike Crapo (R-ID), who the chairman and ranking member of the of the Senate Committee of Finance, as well as Reps. Richard Neal (D-MA) and Kevin Brady (R-TX), who are the chairman and ranking member of the House Committee on Ways and Means.