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ADA, others ask Congress to make pass-through deduction permanent

April 11, 2019

By Jennifer Garvin

Washington — The ADA and more than 100 organizations are asking Congress to make the 20 percent pass-through deduction introduced in the Tax Cuts and Jobs Act permanent.

Under current law, that deduction — known as Section 199A — expires after Dec. 31, 2025. In 2017, the ADA successfully advocated to ensure the dental profession benefits from the Tax Cuts and Jobs Act — the first major rewrite of the U.S. tax code in more than 30 years.

In January, the House introduced HR 216, the Main Street Tax Certainty Act of 2019, which would make permanent the Section 199A 20% qualified business income deduction. 

In an April 11 letter to the House Committee on Ways and Means and Senate Finance Committee, the groups urged lawmakers to support the legislation 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,” the groups wrote. “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.”

Read the full letter here.