Smucker’s Main Street Tax Team Hosts Roundtable with Small Businesses

New Freedom, PA – Rep. Lloyd Smucker (PA-11), a member of the tax-writing Committee on Ways and Means held a roundtable in southern York County to discuss tax policies impacting small businesses in Pennsylvania’s 11th District. 

Rep. Smucker leads the Ways and Means Committee’s Main Street Tax Team, tasked to examine parts of the landmark 2017 Tax Cuts and Jobs Act impacting main street businesses such as Section 199A of the Tax Code and policies to improve small business access to capital.

Section 199A, which was adopted as part of the Tax Cuts and Jobs Act, allows for a 20 percent deduction of qualified business income for pass-through entities. Most small businesses 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.

“Small businesses across America, like the ones we heard from today, are the engine of America’s economy. When small businesses thrive on Main Street, our communities thrive. Ensuring tax parity between corporations and small businesses is critical to unleashing the American economy. I want to thank each of our witnesses for sharing their stories about how they would be negatively impacted by the expiration of Section 199A, which has helped small businesses grow, create jobs, and invest in their communities. We must make Section 199A permanent by passing my Main Street Tax Certainty Act,” said Rep. Lloyd Smucker (PA-11). 

Rep. Smucker was joined by Ways and Means colleague Rep. Mike Kelly (PA-16).

“I want to thank Rep. Smucker for hosting this insightful visit where we could hear from business and industry leaders across Central Pennsylvania,” said Rep. Mike Kelly (R-PA), Chairman of the Ways & Means Subcommittee on Tax. “As we look ahead to the 2025 tax talks, it’s critical that Congress work together for pass commonsense, pro-growth tax policy will allow Main Street businesses to thrive.”

Small businesses from York and Lancaster counties offered testimony about how their operations are impacted by federal tax policy, including the potential expiration of Section 199A.

The following business leaders offered testimony during the roundtable discussion: 

• Eric Paules – CEO- Crescent Industries Inc., New Freedom, PA 
• Bill Riff – Owner & Team Leader- Sport Clips, East Petersburg, PA 
• Mike Signor – Board Member- Houck, York, PA 
• Eric Wenger – Partner, Tax Services Group, RKL, Lancaster, PA 
• Luke Austin – Financial Advisor- Edward Jones, Hanover, PA 
• Wendy and Marci Bittner –Treasurer and President- LOSHAW Thermal Technology, Spring Grove, PA 
• Jon Toy – Partner & VP of Sales- FASTSIGNS, Lancaster, PA 
• Steve Harnish – CEO- Central Manor Dairy, Washington Boro, PA 

Prior to the roundtable, Reps. Smucker and Kelly toured small businesses in Shrewsbury and New Freedom, including Soulshine Boutique, Keller Brown Insurance Services, Saubel’s Markets, and New Freedom Roasting Co. & Deli. 

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. The Main Street Tax Certainty Act has bipartisan support and is cosponsored by 185 members of the House. 

- Smucker’s legislation is also supported by local and national stakeholders including: the York County Economic Alliance, the Lancaster Chamber of Commerce, the Hanover Chamber of Commerce, the National Federation of Independent Businesses, the National Association of Manufacturers, and over 160 more organizations. 

- 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 reportfrom the S Corporation Association indicates “private companies organized as pass-through businesses employ 58 percent of all private sector workers.”

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