Central Montana Times

U.S. Senators Steve Daines of Montana and John Thune of South Dakota, along with 33 other Republican senators, have introduced the "Main Street Tax Certainty Act." This bill aims to make permanent a 20 percent tax deduction for pass-through businesses, a provision initially established under President Trump's 2017 tax cuts. The legislation seeks to prevent an impending tax increase for small businesses should the current provisions expire at the end of 2025.

Senator Daines emphasized the importance of this measure for his state, stating, “As the son of a contractor, I’ve seen firsthand the hard work it takes to keep a small business flourishing—especially as Americans are still grappling with the effects of Joe Biden’s inflation. It’s absolutely crucial that we pass this legislation to prevent a 20 percent tax increase for hardworking Montanans.”

Majority Leader Thune echoed these sentiments by highlighting the broader economic impact: “Small businesses are the economic engine that drive growth and jobs in South Dakota and across our country. This legislation is critical to permanently extending a key provision from the Tax Cuts and Jobs Act.”

The group supporting this initiative includes notable Republican senators such as John Barrasso from Wyoming, Shelley Moore Capito from West Virginia, James Lankford from Oklahoma, and others who believe that maintaining this deduction is vital for sustaining small business operations.

A recent study by Ernst & Young (EY) underscores the significance of this deduction by pointing out its support for 2.6 million jobs and $325 billion in GDP activity.

Chris Netram from the National Association of Manufacturers expressed support: “Congress must preserve the pass-through deduction to protect small and medium manufacturers.” Similarly, Brad Close from NFIB highlighted potential consequences if Congress does not act: “If Congress fails to act, more than 30 million small businesses will face a massive tax hike at the end of this year."

Brad Griffin from Montana Retail Association added local perspective: "Montana hospitality and retail operators strongly support Senator Daines’ 'Main Street Tax Certainty Act' which provides stability and relief."

The bill has also garnered backing from over 230 trade associations nationwide.