Greenville Reporter

Greenville, NC — Yesterday, Congressman Greg Murphy, M.D. hosted a roundtable discussion to explore the impact of the expiration of Section 199A provisions of the Tax Cuts and Jobs Act and solutions to protect Main Street businesses.

"Small business owners are the backbone of the American Dream and play an instrumental role in fueling our local economies," said Congressman Greg Murphy, M.D. "Section 199A of the Tax Cuts and Jobs Act has enabled countless businesses to thrive by providing a 20% deduction on qualified business income. They used these monies to expand their businesses, employ more people and provide better benefits to their employees. It is so critical to support American businesses as they face fierce competition from overseas companies whose governments supplement their products and have less regulation. So many family farms fall under 199A, and as they have been pounded by inflation and estate taxes, we must do all we can to keep them alive."

"With the TCJA set to expire in 2025, I met with local business owners to understand their deep concerns and discuss proactive strategies to mitigate the looming 43.4% tax liability they will face if Section 199A is not extended. My priority is to ensure that American small businesses are well-prepared to navigate these challenges so they can continue to prosper."

"Congressman Murphy has been an unwavering advocate for family-owned wine and spirits wholesalers, and his commitment to preserving the 199A tax deduction demonstrates his deep understanding of the challenges these businesses face," said Dwayne Carson, Senior Director of Federal Affairs, Wine & Spirits Wholesalers of America. "We at WSWA are incredibly grateful for his leadership and dedication to ensuring that these vital enterprises continue to thrive and contribute to our economy."

Participants included:

- Dwayne Carson, Wine & Spirits Wholesalers of America

- Russ Saputo, Carolina Eagle Distributing

- Neil Robinette, C.F. Smith Property

- Tina Long, Brixmor Property

- Linda Andrews, NCFB

- Taylor Jeffreys, T.A. Loving Company

- David Osterhus, The Keith Corporation

- Darrell Palasciano, The Providence Group of the Carolinas

- Kelly Casey, Curtis Construction Company

- Seth Lucas, East Coast Wings

- Robbie Parker, U.S. Tobacco Cooperative

- Brad Edwards, NC Consultant

- Jason Jones, Copypro Inc.

- Peter West, Custom Building Company

- Randy Hyman, Carolinas Cotton Growers Cooperative

Background:

Small businesses categorized as pass-through entities can deduct up to 20% of their qualified business income according to Section 199A of the Tax Cuts and Jobs Act. This provision is scheduled to expire at the end of 2025.

If Section 199A is not extended, individual and family-owned businesses on Main Street will face significantly higher taxes including a 43.4% tax liability. The 199A deduction allows these businesses to stay competitive and focus on growing and investing in their ventures.

Main Street businesses employ the majority of private-sector workers and make up 95% of all businesses.