Senate approves Sen. Daines’s amendment protecting against tax hikes, preserving TCJA’s 20 percent small business tax deduction
WASHINGTON, D.C. – In case you missed it, House Small Business Committee Republican Leader Rep. Blaine Luetkemeyer (R-MO), Ways and Means Republican Leader Rep. Kevin Brady (R-TX), and Budget Committee Republican Leader Rep. Jason Smith (R-MO) issued the following statement applauding the passage of Senator Steve Daines’s (R-MT) amendment protecting against tax hikes on small businesses, and preserving the Tax Cuts and Jobs Act’s 20 percent small business tax deduction:
“Republican tax reform’s 20 percent small business deduction allowed Main Street businesses to keep and invest more of their hard-earned money in their workers and to expand in their communities.
“Even though this deduction created $66 billion in savings for small business owners in 2019, Democrats proposed gutting it.
“The Senate’s passage of Senator Daines’s amendment is a clear rebuke of this approach and shows that a bipartisan majority supports protecting small businesses against Democrats’ runaway spending and crippling tax hikes.”
The Tax Cuts and Jobs Act Supported Local Job Creators:
The Tax Cuts and Jobs Act (TCJA) created the first-ever 20 percent deduction for small businesses, which has allowed local job creators to keep more of their hard-earned money to hire, invest, and grow in their communities.
According to the NFIB, more than 80 percent of its members say this deduction is important to their business, and more than 90 percent want it to be made permanent.
Individual and family-owned businesses are the backbone of the American economy – they employ the majority of private-sector workers and represent 95 percent of all businesses.
The Tax Cuts and Jobs Act Boosted Workers’ Paychecks:
This provision contributed to the strongest small business economy in a generation and the resurgence of American manufacturing pre-pandemic.
In anop-edfor theChicago Tribune, a manufacturing job creatorsharedhow the provision allowed her to “provide employees with bonuses, wage increases, and 100% paid health care.”
Democrats Proposed Eliminating the Small Business Tax Deduction:
President Biden hadsaid repeatedlyhe wants to repeal the Tax Cuts and Jobs Act, including the small business deduction.
The lead Democrat on the Senate Finance Committeeoffered legislationto repeal this specific deduction.
Democrats are still pursuing other approaches to raising taxes on small business including a supercharged second death tax, raising the corporate tax rate that will impact 1.4 million small businesses, and eliminating the individual tax cuts for those who file business taxes as individuals.