MSCI Supports Bill To Ensure Business Tax Parity
Last week, Sen. Steve Daines (R-Mont.) introduced S. 1149, the Main Street Tax Certainty Act of 2019, which would make permanent the Section 199A 20 percent qualified business income deduction that was passed as part of the 2017 federal comprehensive tax reform bill. The deduction, which was designed to provide parity between the income tax rate that small businesses pay and the new 21 percent corporate income tax rate, is set to expire in 2026.
In a press release, Sen. Daines explained the bill would put small businesses “on equal tax footing as corporations.” A similar piece of legislation, H.R. 216, was introduced in the U.S. House of Representatives in January. With the S-Corp Association, the U.S. Chamber of Commerce and more than 100 other business groups, the Metals Service Center Institute issued a letter in support of the legislation.
The letter explained, “Repealing this sunset will benefit millions of pass-through businesses, leading to higher economic growth and more employment. Economists Robert Barro and Jason Furman found that making the pass- through deduction permanent would result in a significant increase in economic growth. The American Action Forum found similar results. The sooner Congress acts to make Section 199A permanent, the sooner the economy will benefit.”
The S-Corp Association also has launched a video explaining the importance of making Section 199A permanent for small businesses.