NAW joined over 200 trade associations in sending a letter to Sen. Steve Danies (MT) and Rep. Lloyd Smucker (PA-11) voicing support for their legislation to make permanent the Section 199A tax deduction for small businesses.

Eric Hoplin, President and CEO of NAW, released the following statement:

“The 199A Small Business Deduction is crucial for wholesaler-distributors. Over 95 percent of businesses in the U.S. – including most wholesaler-distributors – are pass-throughs and collectively employ more than 78 million American workers. Eighty-one percent of wholesaler-distributors have less than 20 employees and rely on the Section 199A deduction to remain competitive.

The 20 percent small business deduction, created by the Tax Cuts and Jobs Act, allows distributors to reinvest in the 6.1 million workers they employ by giving them resources to hire, raise wages, and provide extensive benefits such as health and retirement, career development programs, formal profit-sharing, quarterly cash bonuses, financial workshops and volunteer paid time off.

Unfortunately, the small business dedication expires at the end of 2025, and absent congressional action, pass-throughs could face a top tax rate of 39.6. NAW supports Sen. Daines and Rep. Smucker’s reintroduction of the Main Street Tax Certainty Act of 2025. Congress must act swiftly to make permanent the 199A deduction so that small businesses can continue creating quality, high paying jobs and re-invest in their workers to unleash the Trump Administration’s bold vision for a “golden age” of economic growth.”

NAW is one of America’s leading trade associations, representing the $8 trillion wholesale distribution industry. Our industry employs more than 6 million workers throughout the United States, accounting for approximately 1/3 of the U.S. GDP. 250,000 wholesale distribution companies operate across North America, including all 50 states. Learn more at naw.org.