Last week, the American Financial Services Association (AFSA), along with other associations, endorsed a letter in support of the reconciliation bill in the U.S. House. This legislation builds on the 2017 Tax Cuts and Jobs Act by extending and strengthening key provisions that benefit the Main Street business community.
The bill aims to enhance three cornerstone provisions for pass-through businesses: lower individual tax rates, the Section 199A pass-through deduction, and higher estate tax exemptions. These measures are designed to provide long-term certainty, enabling small and family-owned businesses to reinvest, grow, and plan across generations without facing significant tax burdens. Additionally, the bill proposes restoring immediate expensing for research and development (R&D), 100% bonus depreciation, and a higher cap on interest deductions to facilitate business investment in innovation and expansion.
AFSA and other supporting associations commend the House for developing a pro-growth tax package that maintains fiscal responsibility. They believe this legislation demonstrates that it is possible to support job creators while adhering to budget discipline—a positive outcome for Main Street businesses and the broader U.S. economy.