Central Montana Times

U.S. Senator Steve Daines, alongside The National Federation of Independent Businesses (NFIB) President Brad Close, held a press conference today to emphasize the need to prevent a significant tax increase on small businesses. They urged the passage of Daines’ “Main Street Tax Certainty Act,” which aims to make the 20 percent tax deduction for small businesses permanent.

Daines expressed his support for small business owners, drawing from his personal background as the son of a contractor in Montana. "I grew up as the son of a contractor. Mom and dad had a small home-building business in Montana. In fact, they’ve been NFIB members for many, many years," he said. He emphasized that high tax rates hinder business expansion and hiring efforts, stating, "Now, high tax rates are a barrier for businesses to expand, to hire more employees and to grow their businesses."

He highlighted the uncertainty caused by expiring tax provisions in Washington, D.C., arguing that it creates problems for businesses nationwide. "This is why it’s important that we make these tax provisions permanent so these small business owners behind me aren’t having to worry more about what’s going on in D.C. They have enough to worry about as it is," he added.

Daines warned about the potential consequences if these provisions are not made permanent by 2025. He cited Richard Rubin from The Wall Street Journal: "Remember that if we don’t make these provisions permanent...it’s a $4 trillion increase in taxes." He also noted that under Democratic control of Congress post-2024 elections, this figure could rise by an additional $2 trillion.

In Montana, where 74 percent of jobs come from small businesses, Daines stressed the critical role these entities play in both local and national economies. "So really, the engine driving this economy, the engine driving employment, is small businesses," he said.

The 20 percent small business deduction was established under section 199A as part of the 2017 tax cuts aimed at leveling the playing field between small businesses and large corporations. Without Congressional action before its expiration at the end of 2025, nine out of ten small businesses could face substantial tax increases.

Daines reintroduced the “Main Street Tax Certainty Act” last year. A recent study by Ernst and Young highlighted that this deduction supports economic activity including 2.6 million jobs and contributes $325 billion to GDP.