MSCI Thanks Congress For Preserving Lower Tax Burdens For Pass Through Entities

Last week, the Metals Service Center Institute (MSCI) joined the U.S. Chamber of Commerce, the S Corp Association, the Family Business Coalition, and nearly 100 other trade associations on a letter that thanked federal lawmakers for their work to lower taxes for pass-through entities.

As Connecting the Dots readers may recall, if Congress had not approved the Working Families Tax Cut Act last year, important provisions approved in 2017 that lowered taxes on these businesses would have expired.

“Making permanent lower marginal rates and the Section 199A small business deduction were key to the success of the bill,” the letter explained. “Those provisions were critical in preserving rate parity by allowing pass-through businesses to compete on a more equal playing field with their larger C corporation competitors. They also ensure Main Street companies have the certainty they need to invest and create jobs.”

The Working Families Tax Cut Act also revived a number of reforms that will have lasting benefits for all businesses, especially those in the manufacturing sector. These provisions include restoration of the 100 percent bonus depreciation, reinstatement of the full expensing for research and experimentation costs, and an easing of interest expense caps that encourage the capital formation necessary to modernize, expand, and create jobs. “Taken together, these provisions represent a generational victory for the millions of business owners our organizations represent, a victory that will increase investment, jobs and opportunity in the coming years,” MSCI and its allies concluded.

Read the full letter at this link.

In related news, the Main Street Employers Coalition has launched a page dedicated to collecting stories, testimonials, and real-world examples of how these Working Families Tax Cut policies have positively affected pass-through entities. If you are a business owner or employee who has benefited, please consider sharing your experience by clicking here.