Economics Group of Wells Fargo Bank, N.A.
Legislation would make the Section 199A 20 percent pass-through deduction permanent, providing tax certainty for main street businesses across the country
Washington, D.C. – The National Association of Wholesaler-Distributors (NAW), which is the voice of the 8.2 trillion-dollar wholesale distribution industry, and employs more than 6 million U.S. workers, released the following statement endorsing H.R. 4721, the Main Street Tax Certainty Act introduced by Congressman Lloyd Smucker (R-PA): “NAW is proud to endorse the Main Street Tax Certainty Act,” said NAW CEO Eric Hoplin. “The wholesale distribution industry extends our appreciation to Congressman Smucker for introducing this vital piece of legislation, and we urge Congress to pass this bill into law,” concluded Hoplin. “Millions of main street businesses across the country including wholesaler-distributors face a tax increase if the 199A pass-through deduction is allowed to expire at the end of 2025. The looming deadline threatens the ability of businesses to continue to make payroll, hire, and invest in their local economies, “ said NAW Associate Vice President for Government Relations Alex Hendrie. “Congressman Smucker’s Main Street Tax Certainty Act stops this harmful tax increase and we urge all members of Congress support it,” concluded Hendrie. In an effort to create some level of parity between C-Corporations and smaller businesses that file taxes as pass-through entities, Congress included a provision known as Section 199A in the Tax Cuts and Jobs Act of 2017. Section 199A created a 20% deduction for pass-through businesses. However, unlike the corporate tax cuts that were made permanent, Section 199A is set to expire at the end of 2025. READ FULL ARTICLE >>