On October 12th, GCCA joined with coalition partners in sending a letter to Congressional Leaders expressing concerns with the Small Business Tax Fairness Act (S.2387). The legislation proposes phase out limits for 199A deductions that will exclude a significant number of small businesses from this important deduction. The 199A deduction was intended to create some parity between the tax rates for C corporations and the tax rates for pass through entities. Pass through entities are already facing a significant disadvantage by the fact that, while the lower C corporation rates set in 2017 are permanent, the 199A deduction will sunset at the end of 2025. To significantly lower the phase out, while also retaining the 2025 sunset will be extremely harmful for a wide swath of small businesses, many of which are still struggling to survive and recover from the pandemic. This is part of GCCA’s ongoing efforts to address a variety of concerning tax proposals currently being considered in Congress.
