On June 22, ABC joined more than 100 trade associations to support the Main Street Tax Certainty Act (H.R. 1381/S. 480) and to oppose potential legislation from Sen. Ron Wyden (D-Ore.) that would weaken the Section 199A pass-through deduction. The Main Street Tax Certainty Act would make permanent the current 20% deduction for small and family-owned businesses, provided through Section 199A of the Tax Cuts and Jobs Act of 2017. However, Senate Finance Committee Chairman Ron Wyden (D-Ore.) plans to propose changes to the business deduction. While still being drafted, the bill is reported to take aim at phasing out the deduction for individuals making above $400,000 in annual business income and eliminating it completely for those making over $500,000.
The letter released on June 22 notes that rolling back or otherwise limiting the deduction would have a severely detrimental effect on the 95% of American businesses organized as pass-throughs and limit the ability of these businesses to recover from the effects of the COVID-19 pandemic.