Earlier this year, U.S. House Ways and Means Committee Chair Jason Smith (R-Missouri) created various tax teams to identify legislative solutions for the sections of the 2017 Tax Cuts and Jobs Act (TCJA) that are scheduled to expire at the end of 2025.

Rep. Smith tasked Rep. Lloyd Smucker (R-Pennsylvania) to lead the Main Street Tax Team. Rep. Smucker is also the lead sponsor of H.R. 4721, the "Main Street Tax Certainty Act," which would make permanent the 20% small business deduction, also known as section 199A.

Last week, Rep. Smucker hosted a roundtable and visited stores in Shrewsbury, Pennsylvania to discuss this legislation. Specifically, he wanted to hear from local small business owners on how TCJA and 199A have benefited their businesses and their communities. He was joined by Rep. Mike Kelly (R-Pennsylvania), who chairs the tax subcommittee on the House Ways and Means Committee.

Sarah Brown, Big “I" member and president and CEO of Keller-Brown Insurance Services in Shrewsbury, Pennsylvania, hosted Reps. Smucker and Kelly at her agency, which is in its 125th year of continuous family ownership. Brown and her team explained the importance of the 199A deduction and what it means to their agency, their customers and their community.

The deduction, which is scheduled to expire at the end of 2025, is heavily relied upon by many Big “I" members and their clients to expand their small businesses, hire more employees, and better serve their communities. Pass-through entities have factored this deduction into their operations and its expiration would result in a tax increase on many small businesses. Such an increase would create an unlevel playing field and put pass-throughs at a disadvantage to those filing taxes at the corporate rate.

The Big “I" was the only insurance trade association asked to participate in this important roundtable discussion. The Big “I" is in regular contact with Rep. Smucker and has developed a strong relationship with him and his staff.

The Big “I" is working tirelessly to educate all elected officials about the importance of the 199A deduction and will continue to do so. If you have examples of how 199A has benefited your agency, send the Big “I" a brief testimony that the government affairs team can use to educate elected officials.

As Congress continues to discuss tax reform and related legislation regarding the TCJA, the Big “I" will be at the table advocating for independent agents and will provide updates through the News & Views e-newsletter.

Raaed Haddad is Big “I" director of federal government affairs.