St. Mary official: Keep small business deduction

(Editor's note: St. Mary Economic Development Director Evan Boudreaux wrote this letter to U.S. Sen. Bill Cassidy, R-Baton Rouge, who chairs the Senate Health, Education, Labor & Pensions Committee.)
The Honorable Bill Cassidy
United States Senate
455 Dirksen Senate Office Building
Washington, D.C. 20510
Dear Chairman Cassidy:
Small businesses are the lifeblood of our economy, especially in rural communities like ours. They create jobs, drive local investment, and provide essential goods and services. However, small businesses often face significant financial hurdles, and uncertainty in the tax code only adds to their challenges. That is why Congress must act now to pass S. 213 the Main Street Certainty Act, introduced by Senator Daines, which would make the 20% Small Business Deduction (Section 199A) permanent.
Why This Matters
The Small Business Deduction was introduced in the 2017 Tax Cuts and Jobs Act to help level the playing field between small businesses and large corporations. It allows small businesses structured as pass-through entities — such as sole proprietorships, partnerships, and S-corporations — to deduct up to 20% of their qualified business income. This deduction has provided much-needed relief, enabling businesses to reinvest in their employees, expand operations, and contribute to local economies.
However, this deduction is set to expire in 2025, creating uncertainty for small business owners who rely on it to maintain stability and growth. Without congressional action, thousands of small businesses in our community and across the country will face a sudden and substantial tax increase, stifling economic momentum and jeopardizing jobs.
The Benefits of Making the Deduction Permanent
1. Encourages Job Creation and Wage Growth: When small businesses retain more of their earnings, they can hire more workers, increase wages, and invest in workforce development. A permanent deduction would give business owners the confidence to expand and create new opportunities for our residents.
2. Levels the Playing Field: Unlike major corporations, small businesses do not have the same access to tax advantages or capital markets. The 20% deduction helps offset this disparity, ensuring that Main Street entrepreneurs can compete fairly with Wall Street giants.
3. Strengthens Rural Economies: Rural communities, like ours, rely heavily on small businesses to sustain economic growth. Uncertainty in the tax code makes it harder for these businesses to plan for the future. By making the deduction permanent, Congress can provide stability that fosters long-term investment in rural infrastructure and job creation.
4. Support Business Expansion: Many small businesses operate on tight margins, and unexpected tax increases can deter growth. Keeping the Small Business Deduction intact allows entrepreneurs to plan ahead, secure loans, and reinvest in equipment, technology, and new services.
Congress Must Act Now
The Main Street Certainty Act has bipartisan support because lawmakers recognize the essential role small businesses play in our economy. However, time is running out. If Congress fails to act, small businesses will face a higher tax burden, forcing many to scale back operations, delay expansion plans, or even close their doors.
We urge our congressional delegation to stand up for Main Street and support the passage of the Main Street Certainty Act. By ensuring permanent tax relief for small businesses, we can promote economic growth, sustain rural communities, and create a more prosperous future for all.
Now is the time to protect our local businesses and the hardworking people who depend on them.
Congress must deliver the certainty that Main Street deserves.
Thank you for your attention to this matter.
Sincerely,
Evan D. Boudreaux, MPA, CLED
Executive director, St. Mary Development Alliance