On May 18, Senator Steve Daines, R-Mont. introduced the Main Street Tax Certainty Act. The bill would prevent rate hikes on America’s individually and family-owned businesses by making permanent the Section 199A 20-percent deduction. This deduction was created by the Tax Cuts and Jobs Act but is scheduled to sunset at the end of 2025.

The introduction of this legislation was widely anticipated in the business community, and ABC joined with more than 140 trade associations representing millions of Main Street businesses in a strong letter of support for the legislation.

On April 25, ABC sent a letter of support for House Republican Leadership’s proposal to increase the debt ceiling while tackling Washington spending in a proposal that would save $4.5 trillion through slowed growth in government spending and cuts to priorities of the Biden administration.

The Limit, Save, Grow Act would establish spending levels for fiscal year 2024 at FY22 levels and allow only for 1% annual growth over the next 10 years, in exchange for raising the debt limit by $1.5 trillion or through March 31, 2024, whichever comes first. You can view a one-pager of the bill.

The bill also goes after the White House’s priorities, including rescinding funding under the Democrats’ Inflation Reduction Act, tax and spend reconciliation package from last year for IRS enforcement funding that will burden American taxpayers and small businesses with more audits and increased compliance costs; repealing ABC-opposed IRA energy tax credits that include burdensome and discriminatory prevailing wage and apprenticeship requirements; ending the President’s executive action on student loan forgiveness; and reclaiming unspent COVID funds.

Additionally, the bill includes ABC-supported legislation, the REINS Act to block excessively burdensome agency rules and regulations, and H.R. 1 to unleash America’s energy production and ensure American energy independence.

On April 19, the House Ways and Means Committee held a hearing on “The U.S. Tax Code Subsidizing Green Corporate Handouts and the Chinese Communist Party.” The hearing focused on the tax breaks included in the partisan Inflation Reduction Act that was passed through the reconciliation process last Congress. The committee highlighted the tax credits increased expected cost to taxpayers, and the ability of foreign countries, including China, and larger corporations to benefit from these tax credits at the expense of taxpayers and smaller businesses throughout the country. Reports have indicated that Republicans in the House are considering a repeal of these tax credits as part of the negotiations surrounding the debt limit.

ABC submitted comments to the committee highlighting concerns with the IRA energy tax credits and the “bonus rate” tied to prevailing age and registered apprenticeships requirements. ABC believes that repealing these ill-advised tax credits will not only save taxpayer dollars but will also give Congress a new opportunity to work toward bipartisan energy incentivizes to unleash America’s potential and allow our entire qualified construction workforce to meaningfully participate in critical projects across the country.

On March 29, Sen. John Thune, R-S.D., reintroduced his legislation to permanently repeal the estate tax. As part of the Family Business Estate Tax Coalition, ABC joined other trade organizations in a letter supporting the bill’s reintroduction and the significant relief it would provide to family-owned businesses.

On March 9, the White House releases the President’s budget proposal for the next fiscal year, which renews calls for tax hikes to support Democrats federal spending priorities in the coming years. ABC joined a broad coalition of organizations in a letter opposing the president’s tax hikes, which would hit small businesses the hardest.

While the president’s budget is not typically approved by Congress, it highlights the administration’s priorities for the coming year and provides a blueprint for his message should he decide to seek another term in office. Throughout the budget proposal, the President also calls for the creation of union only jobs on critical federal construction projects, alluding to the administration’s continued support for ABC-opposed policies that will limit job-opportunities for hard-working Americans in the construction industry.