East Idaho Times

U.S. Senators Jim Risch and Steve Daines have introduced the Main Street Tax Certainty Act, a bill aimed at permanently extending the 20 percent tax deduction for pass-through businesses. This move is intended to prevent what they describe as a significant tax increase for small businesses if the current tax cuts expire.

"Inflicting a 20% tax increase on Idaho’s small businesses would be damaging to our economy and local communities," said Senator Risch. He emphasized that the act would ensure these businesses continue to contribute significantly to Idaho's economy.

Senator Daines, drawing from personal experience, stated, "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." He stressed the importance of passing this legislation to support Montana's small businesses.

The 20% deduction was originally part of President Trump's 2017 tax reforms designed to help small businesses compete with larger corporations. Without legislative intervention, this deduction will expire at the end of 2025, potentially impacting nine out of ten small businesses with increased taxes.

Several other senators have joined Risch and Daines in supporting this legislation, including John Thune, John Barrasso, Shelley Moore Capito, James Lankford, Joni Ernst, Tom Cotton, Tim Scott, Chuck Grassley, Kevin Cramer, Jerry Moran, Marsha Blackburn, Mike Rounds, Pete Ricketts, Katie Britt, Eric Schmitt, Roger Wicker, Cynthia Lummis, Cindy Hyde-Smith, Tommy Tuberville, Ted Cruz, John Hoeven, Thom Tillis, Roger Marshall, Jim Justice, Tim Sheehy Deb Fischer Bill Cassidy Ted Budd Rick Scott Bill Hagerty Todd Young John Kennedy and Jim Banks.

A recent study by Ernst and Young highlighted that this tax deduction supports approximately 2.6 million jobs and contributes $325 billion to GDP annually.