While Senate Finance Committee chairman Ron Wyden (D-Oregon) introduced legislation on Tuesday to streamline the section 199A deduction for qualified business income for pass-through entities, but also phasing out the deduction above $400,000, the National Federation of Independent Businesses expressed its opposition to the bill saying that the proposed legislation would directly hurt small businesses during the fragile recovery.
Wyden’s legislation would expand the qualified business income for pass-through entities to middle-income services businesses allowing accountants, lawyers, doctors and others to qualify by removing the restricting imposed under the 2017 tax law by which industries qualify for the 199A deduction. At the same time Wyden’s bill imposes a cap of $400,000 to limit how much business owners could deduct from their taxes in order to cover the expanded cost of the pass through to more businesses and also help fund other budget priorities.
You can find out more about the proposed Small Business Tax Fairness Act at this website.