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The Issue: In the 2017 Tax Cuts and Jobs Act, Congress approved:

• A permanent reduction in the corporate income tax rate from 35% to 21%.
• A temporary 20% deduction for pass-through businesses (such as sole proprietorships, partnerships and S Corporations) for qualified business income.

Unlike the permanent reduction for C corporations, the 20% deduction for passthrough businesses is currently scheduled to expire at the end of 2025, which will create a disadvantage for these small businesses.

Why It Matters: Distributors qualify for the pass-through deduction under section 199A of the Internal Revenue Code. The deduction enables these local, Main Street businesses to stay competitive with Wall Street, create jobs and make investments in their communities

We Encourage Congress To:

• Cosponsor the Main Street Tax Certainty Act (H.R. 4721/S. 1706) to make the 20% pass-through deduction
  permanent.