Smucker Appointed to Lead Ways and Means Committee Main Street Tax Team

Washington-Rep. Lloyd Smucker (PA-11) has been appointed by Ways and Means Committee Chairman Rep. Jason Smith (MO-08) to serve as the Chair of the Main Street Tax Team.

"I want to thank Chairman Smith for the opportunity to lead the Main Street Tax Team. When small businesses thrive on Main Street, our communities thrive. I look forward to leading this effort to help small businesses grow, create jobs, and invest in their communities, by ensuring tax parity between corporations and small businesses. Advancing pro-growth tax policy is critical to unleashing the American economy," said Rep. Smucker.

Smucker will also serve on the American Workforce Tax Team, which is led by Rep. Darin LaHood (IL-16).

Background:

- Rep. Smucker is a small business owner and the lead sponsor of the Main Street Tax Credit Act, legislation which would permanently extend Section 199A of the Internal Revenue Code, which is slated to expire in 2025.

- Section 199A, which was adopted as part of the landmark 2017 Tax Cuts and Jobs Act, allows for a 20 percent deduction of qualified income for pass-through businesses. Most small business are structured as a pass-through and this section was included in the Tax Cuts and Jobs Act to promote equity in America's tax code between small businesses on main street with larger corporations.

- A recent study from the S Corporation Association, which represents individual and family-owned businesses, reports that tax parity between small businesses organized as pass-through entities and corporations will end if Section 199A ceases to exist. Additionally, another report from the S Corporation Association indicates "private companies organized as pass-through businesses employ 58 percent of all private sector workers."

- Ways and Means Committee Chairman Smith established ten Committee Tax Teams, comprised of Ways and Means Republican members, to address key tax provisions from the 2017 Trump tax cuts that are set to expire in 2025 and identify legislative solutions that will continue to help families, workers, and small businesses struggling in the Biden economy. In addition to Section 199A of the Tax Code, the team will be responsible for considering policies to improve small business access to capital.