As part of an ongoing advocacy campaign to renew parts of the Tax Cut and Jobs Act of 2017 (TCJA) set to expire at the end of this year, the Signatory Wall and Ceiling Contractors Alliance (SWACCA) sent a letter of support for the Main Street Tax Certainty Act (H.R. 703) which would make permanent the TCJA’s Section 199A 20 percent deduction for qualified income from passthrough businesses.
In its letter, SWACCA explains that the Section 199A passthrough deduction created tax parity and equity in the tax code between small businesses and larger corporations. By extending the benefits of tax reform to many small- and mid-size businesses, this provision has helped SWACCA members free up capital to invest in new equipment, hire more workers, and compete for more work. The letter notes that if Section 199A is permitted to expire at the end of the year, it would represent a massive tax increase on the vast majority of America’s small- and mid-size businesses and urges lawmakers to include an extension of the 20 percent passthrough deduction in legislation to extend the 2017 TCJA.
The letter reflects the arguments SWACCA is using in numerous meetings with members of Congress about this and other tax provisions important to SWACCA members.
The full letter is available here.