Prior to passage of the House budget resolution, NAIFA joined a letter from a coalition of Main Street Employers to Speaker of the House Mike Johnson and House Minority Leader Hakeem Jeffries urging passage of the resolution to protect S corporations from untenable tax increases. The resolution was passed on February 26 and has been sent to the Senate, which has been working on a separate budget resolution.
The letter NAIFA signed emphasizes the importance of small employers and the impact of tax law on pass-through businesses. It urges lawmakers to make the Section 199A dedication permanent, maintain current tax rates on individuals and pass-through businesses, provide estate tax relief, and increase deductions for business investments in equipment and research and development.
"Pass-through businesses are the backbone of the American economy," the letter says. "They account for 95 percent of all businesses and employ 63 percent of all private sector workers. They also form the economic foundation for thousands of communities nationwide. Without them, those communities would face a future of lower growth, fewer jobs, and more boarded-up buildings."