Cruz, Daines, Leader Thune, GOP Colleagues Introduce Bill to Give Small Businesses Permanent Tax Break

WASHINGTON, D.C. – U.S. Sens. Ted Cruz (R-Texas), Steve Daines (R-Mont.), Majority Leader John Thune (R-S.D.), and 37 additional Republican Senators introduced the “Main Street Tax Certainty Act.” This bill would make the 20-percent pass-through business tax deduction permanent.

Upon introduction, Sen. Cruz said, “Small businesses are the backbone of our economy, providing jobs and opportunities for millions of families across Texas and America. With Biden’s catastrophic inflation continuing to burden hardworking Americans, the last thing they need is a massive tax hike. Making the 20-percent pass-through deduction permanent is essential to ensuring our small businesses can prosper, expand, and keep our nation strong. I’m proud to support the 'Main Street Tax Certainty Act' and will continue fighting to protect small businesses.”

Sen. Daines said, “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. It’s absolutely crucial that we pass this legislation to prevent a 20 percent tax increase for hardworking Montanans and I’ll keep fighting for ways to support Montana small businesses, which provide the majority of jobs in our state.”

Sen. Thune said, “Small businesses are the economic engine that drive growth and jobs in South Dakota and across our country. This legislation is critical to permanently extending a key provision from the Tax Cuts and Jobs Act and ensuring our small businesses and farms and ranches are not hit with a crippling tax hike at the end of 2025.”

The legislation was also co-sponsored by Sens. John Barrasso (R-Wyo.), Shelley Moore Capito (R-W.V.), James Lankford (R-Okla.), Joni Ernst (R-Iowa), Tom Cotton (R-Ark.), Tim Scott (R-S.C.), Chuck Grassley (R-Iowa), Kevin Cramer (R-N.D.), Jerry Moran (R-Kan.), Marsha Blackburn (R-Tenn.), Mike Rounds (R-S.D.), Pete Ricketts (R-Neb.), Katie Britt (R-Ala.), Jim Risch (R-Idaho), Eric Schmitt (R-Mo.), Roger Wicker (R-Miss.), Cynthia Lummis (R-Wyo.), Cindy Hyde-Smith (R-Miss.), Tommy Tuberville (R-Ala.), John Hoeven (R-N.D.), Thom Tillis (R-N.C.), Roger Marshall (R-Kan.), Jim Justice (R-W.V.), Tim Sheehy (R-Mont.), Deb Fischer (R-Neb.), Bill Cassidy (R-La.), Ted Budd (R-N.C.), Rick Scott (R-Fla.), Bill Hagerty (R-Tenn.), Todd Young (R-Ind.), John Kennedy (R-La.) and Jim Banks (R-Ind.), John Curtis (R-Utah), Dan Sullivan (R-Alaska), Lindsey Graham (R-S.C.), Bernie Moreno (R-Ohio), John Boozman (R-Ark.).

Read the bill text here.

BACKGROUND

The 20-percent small business deduction, section 199A, was created as a part of President Trump’s 2017 tax cuts to level the playing field between small businesses and corporations. Without Congressional action, it will expire at the end of 2025, causing 9 out of 10 small businesses to incur a significant tax hike. This legislation is endorsed by the National Association of Manufacturers, National Federation of Independent Business, and over 230 trade associations.

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