Business Groups Support Bill to Make Deduction Permanent

April 11, 2019

The Honorable Chuck Grassley
Chairman
Committee on Finance
United States Senate
219 Dirksen Senate Office Building
Washington, D.C. 20510

The Honorable Richard Neal
Chairman
Committee on Ways and Means
United States House of Representatives
1102 Longworth House Office Building
Washington, D.C. 20515

The Honorable Ron Wyden
Ranking Member
Committee on Finance
United States Senate
219 Dirksen Senate Office Building
Washington, D.C. 20510

The Honorable Kevin Brady
Ranking Member
Committee on Ways and Means
United States House of Representatives
1102 Longworth House Office Building
Washington, D.C. 20515

Dear Chairmen and Ranking Members:

The undersigned business groups strongly support H.R. 216, the Main Street Tax Certainty Act of 2019, which would make permanent the Section 199A 20 percent qualified business income deduction.

Led by Representatives Jason Smith (MO) and Henry Cuellar (TX) in the House and Senator Steve Daines (MT) in the Senate, this bipartisan legislation will help ensure permanent tax relief for the millions of employers organized as S corporations, partnerships and sole proprietorships.

These Main Street employers are the backbone of the American economy — they employ the majority of U.S. workers and represent 95 percent of all businesses.

Despite the economic importance of the pass-through sector, the Section 199A deduction is scheduled to sunset at the end of 2025. Repealing this sunset will benefit millions of pass-through businesses, leading to higher economic growth and more employment. Economists Robert Barro and Jason Furman found that making the pass-through deduction permanent would result in a significant increase in economic growth. The American Action Forum found similar results.

The sooner Congress acts to make Section 199A permanent, the sooner the economy will benefit. Please show your support for Main Street employers and support this important legislation. We appreciate your consideration.

Sincerely,

Agricultural Retailers Association

Air Conditioning Contractors of America (ACCA)

American Bankers Association

American Beverage Licensees

American Business Conference

American Council of Engineering Companies

American Dental Association

American Farm Bureau Federation

American Foundry Society

American Institute of Architects

American Rental Association

American Staffing Association

American Supply Association

American Trucking Associations

AMT — The Association For Manufacturing Technology

Associated Builders and Contractors

Associated Builders and Contractors Florida East Coast Chapter, Inc.

Associated Equipment Distributors

Associated General Contractors of America

At-sea Processors Association

Auto Care Association

Building Services Contractors Association International

CCIM Institute

Construction Industry Round Table

Convenience Distribution Association

Family Business Coalition

Financial Executives International

Fluid Power Distribution Association

Foodservice Equipment Distributors Association (FEDA)

Forest Landowners Association

Gases and Welding Distributors Association

Heating, Air-conditioning, & Refrigeration Distributors International

Independent Community Bankers of America

Independent Bakers Association

Independent Electrical Contractors

Independent Insurance Agents & Brokers of America

Independent Lubricant Manufacturers Association

Industrial Fasteners Institute

Institute of Real Estate Management

International Association of Plastics Distribution

International Council of Shopping Centers

International Foodservice Distributors Association

International Franchise Association

International Warehouse Logistics Association

Irrigation Association

ISSA — The Worldwide Cleaning Industry Association

Manufacturer & Business Association

Metals Service Center Institute

Mortgage Bankers Association

NFIB

National Apartment Association

National Association of Convenience Stores

National Association of Electrical Distributors

National Association of Home Builders

National Association of Manufacturers (NAM)

National Association of Professional Insurance Agents

National Association of Realtors

National Association of Sporting Goods Wholesalers

National Association of Wholesaler-Distributors

National Automobile Dealers Association

National Beer Wholesalers Association

National Cattlemen's Beef Association

National Community Pharmacists Association

National Council of Farmer Cooperatives

National Electrical Contractors Association

National Electrical Manufacturers Representatives Association

National Funeral Directors Association

National Grain and Feed Association

National Grape Co-Operative Association, Inc.

National Grocers Association

National Lumber & Building Material Dealers Association

National Marine Distributors Association

National Multifamily Housing Council

National Roofing Contractors Association

National Small Business Association

National Stone, Sand and Gravel Association

National Utility Contractors Association (NUCA)

North American Association of Food Equipment Manufacturers (NAFEM)

North American Association of Utility Distributors (NAAUD)

North American Meat Institute

Outdoor Power Equipment and Engine Service Association

Petroleum Equipment Institute

Petroleum Marketers Association of America (PMAA)

Policy and Taxation Group

Printing Industries of America

Professional Beauty Association

REALTORS Land Institute

S Corporation Association

Secondary Materials and Recycled Textiles Association (SMART)

Small Business & Entrepreneurship Council (SBE Council)

Specialty Equipment Market Association

Textile Care Allied Trades Association

The Association for Hose and Accessories Distribution The Fertilizer Institute

The Real Estate Roundtable

Truck Renting and Leasing Association

United States Chamber of Commerce

Western Equipment Dealers Association

Wholesale Florist and Florist Supplier Association

Wine and Spirits Wholesalers of America

Wisconsin Grocers Association

Woodworking Machinery Industry Association

World Millwork Alliance