{"id":13320,"date":"2025-01-29T17:33:54","date_gmt":"2025-01-30T01:33:54","guid":{"rendered":"https:\/\/familyenterpriseusa.com\/?p=13320"},"modified":"2025-01-29T17:34:01","modified_gmt":"2025-01-30T01:34:01","slug":"taxation-representation-tax-cuts-business-deductions-congress-takes-action","status":"publish","type":"post","link":"https:\/\/familyenterpriseusa.com\/taxes\/taxation-representation-tax-cuts-business-deductions-congress-takes-action\/","title":{"rendered":"Taxation & Representation: Tax Cuts & Business Deductions\u2014Congress Takes Action"},"content":{"rendered":"

[et_pb_section fb_built=”1″ _builder_version=”4.16″ custom_padding=”4px|||||” global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_divider color=”#397389″ divider_weight=”2px” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_cta title=”Your Perspective Matters: Complete Our Family Business Survey” button_url=”https:\/\/familyenterpriseusa.com\/2025-annual-family-business-survey\/?utm_source=FEUSA&utm_medium=cta&utm_campaign=2025Survey” button_text=”Take 5 minutes to share your insights and gain access to our exclusive 2025 webcast.” disabled_on=”off|off|off” admin_label=”Call To Action Top” _builder_version=”4.27.4″ _module_preset=”default” header_font_size=”22px” background_color=”#397389″ custom_button=”on” button_bg_color=”#ff0019″ custom_margin=”-17px|||||” custom_padding=”16px||19px|||” global_module=”9695″ saved_tabs=”all” global_colors_info=”{}”][\/et_pb_cta][et_pb_divider color=”#397389″ divider_weight=”2px” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_text admin_label=”1″ _builder_version=”4.27.4″ text_font=”||||||||” text_font_size=”16px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n

Sen. Daines, Rep. Smucker Introduce Bill to Extend and Make Permanent the Section 199A Deduction:<\/span> On Jan. 23, Sen. Steve Daines (R-MT) introduced the Main Street Tax Certainty Act (S. 213<\/a>), which would make permanent the Tax Cuts and Jobs Act (TCJA,\u00a0Pub. L. 115-97<\/a>) provision that established the Section 199A 20% deduction for passthrough businesses. The deduction provides greater equivalence between the effective tax rates of passthrough businesses and C Corporations since the corporate rate was permanently lowered to 21% as part of the TCJA. If the Section 199A provision is allowed to expire, many passthrough businesses would be taxed at the individual level, with the top marginal individual income tax rate being 37%, rather than the 29.6% effective tax rate with the section 199A deduction. Sen. Daines\u2019 bill is cosponsored by Senate Majority Leader John Thune (R-SD) and 38 other Senate Republicans. Companion legislation (H.R. 703<\/a>) was introduced in the House by Rep. Lloyd Smucker (R-PA) and has 155 cosponsors, including Democratic Reps. Josh Gottheimer (D-NJ) and Henry Cuellar (D-TX).<\/p>\n

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Senate Finance and Foreign Relations Committees Reintroduce Taiwan Quasi-Tax Treaty: <\/span>On Jan. 23, Senate Finance Committee Chairman Mike Crapo (R-ID) and Ranking Member Ron Wyden (D-OR), along with Foreign Relations Committee Chairman Jim Risch (R-ID) and Ranking Member Jeanne Shaheen (D-NH), reintroduced legislation (S. 199<\/a>) that would establish treaty-like tax benefits between the United States and Taiwan. The bill would call for a tax agreement between the United States and Taiwan that aims to mitigate double taxation for individuals and businesses operating in either country implemented by amendments to the U.S. tax code. Specifically, the bill would provide reciprocal tax benefits for qualified residents of Taiwan and U.S. citizens subject to taxation in Taiwan, and provide adjustments to withholding tax rates, exemptions for qualified wages and rules for business income derived through permanent establishments.<\/p>\n

[\/et_pb_text][et_pb_divider color=”#397389″ divider_style=”dotted” disabled_on=”off|off|off” _builder_version=”4.19.5″ _module_preset=”default” custom_margin=”||14px|||” custom_padding=”10px||2px|||” global_colors_info=”{}”][\/et_pb_divider][et_pb_button button_url=”https:\/\/comms.bhfs.com\/rv\/ff00dfdfb7c019ef9903d827464498b974d0f04a” url_new_window=”on” button_text=”Scott Bessent Confirmed as Treasury Secretary, Republican Leaders Discuss Reconciliation Strategy, Government Funding Negotiations Underway, Legislation Introduced to Extend Section 199A Deduction, Trump Issues Executive Orders Affecting Energy and Regulations, IRS Hiring Freeze and Regulatory Review, and more. Click here to continue reading.” button_alignment=”center” admin_label=”Read More Button” _builder_version=”4.27.4″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″][\/et_pb_button][et_pb_divider color=”#397389″ divider_style=”dotted” disabled_on=”off|off|off” _builder_version=”4.19.5″ _module_preset=”default” custom_margin=”||14px|||” custom_padding=”10px||2px|||” global_colors_info=”{}”][\/et_pb_divider][et_pb_text admin_label=”3″ _builder_version=”4.27.4″ text_font=”||||||||” text_font_size=”16px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n

Ways and Means Republicans Reintroduce Bill to Retaliate Against OECD Deal:<\/span> On Jan. 22, House Ways and Means Committee Chairman Jason Smith (R-MO), joined by all committee Republicans, introduced the Defending American Jobs and Investment Act (H.R. 591<\/a>). The bill is substantially similar to legislation the committee introduced in the last Congress and complements an\u00a0executive order<\/a>\u00a0issued by President Donald Trump on Jan. 20 that withdraws the United States from the Organisation for Economic Co-operation and Development (OECD) global tax agreement. Republicans and some Democrats have been critical of the agreement, asserting that the Biden administration negotiated the deal without congressional consultation. Congressional critics also contend that the deal negotiated could lead to the loss of up to $120 billion in U.S. tax revenue, per an analysis by the Joint Committee on Taxation in the prior Congress.<\/p>\n

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Trump Issues Several Executive Actions Concerning U.S. Energy Production and Funding Allocations:<\/span> Shortly after taking office on Jan. 20, President Donald Trump issued multiple executive orders and memoranda, many of which relate to domestic energy production as well as disbursements of funds allocated through the Inflation Reduction Act (IRA,\u00a0Pub. L. 117-169<\/a>) and Infrastructure Investment and Jobs Act (IIJA,\u00a0Pub. L. 117-58<\/a>) tax credits, grants and loan programs. One of the most significant executive orders, titled \u201cUnleashing American Energy<\/a>,\u201d calls for the immediate pause of the disbursement of IRA- and IIJA-appropriated funds until they are reviewed by department officials and a report on those findings is submitted to the directors of the National Economic Council and Office of Management and Budget. The pause affects all \u201cprocesses, policies, and programs for issuing grants, loans, contracts, or any other financial disbursements of such appropriated funds.\u201d The pause may affect IRA energy-tax credit allocations, though the scope of the executive order remains unclear as to the types of infrastructure and projects that are subject to the pause.<\/p>\n

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The need for fact-based reporting of issues important to multi generational businesses<\/a> and protecting a lifetime of savings<\/a> has never been greater. Now more than ever, multi generational businesses<\/a> and family businesses<\/a> are under fire. That’s why Family Enterprise USA<\/a> is passionately working to increase the awareness of issues important to generationally-owned family businesses<\/a> built on hard work, while continuing to strengthen our presence on Capitol Hill. The issues we fight for or against with Congress in Washington DC include high income tax rates<\/a>, possible elimination of valuation discounts, increase in capital gains tax<\/a>, enactment of a wealth tax<\/a>, and the continued burden of the gift tax<\/a>, estate tax<\/a> and generation skipping tax<\/a>.<\/p>\n

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Family Enterprise USA<\/a> promotes generationally<\/a> owned family business<\/a> creation, growth, viability, and sustainability by advocating for family businesses<\/a> and their lifetime of savings with Congress<\/a> in Washington DC.\u00a0 Since 2007, Family Enterprise USA<\/a> has represented and celebrated\u00a0all sizes, professions and industries of family-owned enterprises and multi-generational<\/a> employers. It is a bi-partisan 501.c3 organization.\u00a0Family foundations can donate.<\/a><\/p>\n

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#incometax #taxseason #federaltaxpolicy #taxation #EstateTax #Deathtax #wealthtax #taxLegislation #CongressionalCaucus #CapitalGainsTax #incometaxrates #incometaxseason #taxrefund #taxreturn #incometaxreturn #gifttax #Generationskippingtax #InheritanceTax #repealestatetax #FamilyBusiness #promotefamilybusinesses #familyowned #supportlocalbusiness #womeninbusiness #AdvocatingForFamilyBusinesses #Generationallyowned #Multigenerationalbusiness\u00a0 @FamilyEnterpriseUSA @PolicyAndTaxationGroup @DitchTheEstateTax #FamilyEnterpriseUSA #PolicyAndTaxationGroup #DitchTheEstateTax<\/p>\n

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Sen. Daines, Rep. Smucker Introduce Bill to Extend and Make Permanent the Section 199A Deduction: On Jan. 23, Sen. Steve Daines (R-MT) introduced the Main Street Tax Certainty Act (S. 213), which would make permanent the Tax Cuts and Jobs Act (TCJA,\u00a0Pub. L. 115-97) provision that established the Section 199A 20% deduction for passthrough businesses. […]<\/p>\n","protected":false},"author":2,"featured_media":13321,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","footnotes":""},"categories":[48,43,92,76,36],"tags":[],"class_list":["post-13320","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-family-businesses","category-estate-taxes","category-multi-generational-business","category-income-taxes","category-taxes"],"acf":[],"_links":{"self":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/13320","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13320"}],"version-history":[{"count":3,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/13320\/revisions"}],"predecessor-version":[{"id":13325,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/13320\/revisions\/13325"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/media\/13321"}],"wp:attachment":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13320"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}