A False Promise for Main Street
President Trump’s campaign to lock in the Section 199A small business deduction forever paints a rosy picture of saving Main Street. Supporters call it a shield against looming tax hikes, a lifeline for family-owned shops and local farms. As someone who’s fought for economic justice my whole life, I see it differently. This plan doesn’t rescue small businesses. It funnels wealth to the richest Americans while leaving most entrepreneurs scraping by. The betrayal stings because it’s cloaked in populist rhetoric.
Born from the 2017 Tax Cuts and Jobs Act, Section 199A lets pass-through businesses deduct 20 percent of their income. Trump and allies like Scott Bessent argue that making it permanent prevents a crushing tax increase on small firms. On the surface, it sounds reasonable. Small businesses employ nearly half the nation’s workers and spark innovation in every corner of the country. But dig into the data, and the facade crumbles. This deduction overwhelmingly benefits high-income owners, not the local diner or corner store.
The National Federation of Independent Businesses reported in March 2025 that small-business confidence hit its lowest point since October, with owners rattled by regulatory shifts and market uncertainty. Taxes rank high on their worry list, but they’re not the only issue. So why is the administration laser-focused on a tax break that misses the mark for most small firms? The answer lies in who really profits. The Joint Committee on Taxation reveals that over 60 percent of Section 199A benefits go to the top 10 percent of earners. Wealthy business owners pocket millions, while the average entrepreneur sees crumbs.
Small businesses deserve support, no doubt. They’re the heart of our communities, from rural towns to bustling cities. But Trump’s plan isn’t about helping them. It’s about rewarding the elite while small firms face rising costs, tight credit, and shrinking margins. The disconnect between the rhetoric and reality is glaring, and it’s time we demand better.
A Deficit Disaster in Disguise
Permanently extending Section 199A doesn’t just favor the wealthy; it’s a fiscal time bomb. The Congressional Budget Office projects that keeping the deduction would pile hundreds of billions onto the federal deficit over a decade. With our national debt already spiraling, this choice sacrifices investments in education, healthcare, and infrastructure—lifelines that small businesses rely on to thrive. Democratic lawmakers have pushed for balanced reforms, targeting relief to middle- and lower-income households who fuel local economies with their spending.
Republican leaders counter that small businesses need tax certainty to grow and hire. They point to USDA estimates suggesting that letting Section 199A expire could cut $325 billion from GDP and cost 2.6 million jobs. These numbers sound alarming, but they overstate the deduction’s role. Small firms thrive when customers have money to spend and when regulations are clear, not just when wealthy owners get tax breaks. Targeted policies, like streamlined compliance or expanded small-business loans, would do more to boost Main Street than a deduction tilted toward the rich.
History offers a lesson here. The 1986 Tax Reform Act simplified the tax code and closed loopholes, prioritizing fairness over special favors. Small businesses didn’t collapse; they adapted and grew. Today, Congress could take a similar path, reforming Section 199A to limit benefits for high earners and redirect funds to working families. That approach strengthens the economy from the ground up, not from the penthouse down.
A Fairer Way to Support Small Firms
Bipartisan backers of bills like the Main Street Tax Certainty Act argue that Section 199A’s permanence is a no-brainer. Small businesses face brutal complexity in the tax code, and stability matters. They’re right about the need for clarity, but wrong about the solution. Locking in a deduction that showers benefits on the wealthy isn’t the answer. A better plan would scale back Section 199A, cap its benefits for top earners, and pair it with progressive policies like higher corporate taxes to fund childcare or infrastructure—measures that lift workers and the businesses they support.
Democratic critics have long flagged the deduction’s flaws. It encourages wealthy owners to game the system by reclassifying income, adding complexity for little gain. The average small business, drowning in paperwork, gets minimal relief. Simplifying the tax code and targeting aid to low- and middle-income entrepreneurs would spark real growth, not just pad the profits of the elite. Congress has the tools to make this happen, but it requires courage to stand up to powerful interests.
The political landscape is tricky. Republicans’ grip on Congress and the White House gives them an edge to push a tax bill through reconciliation. Yet their slim margins and internal squabbles over spending cuts open the door for Democrats to fight for fairness. Lawmakers must seize this chance to prioritize workers and small firms over corporate giants and wealthy owners. Anything less is a disservice to the people who power our economy.
Time to Put Main Street First
Trump’s tax plan, with Section 199A at its heart, is a slick bait-and-switch. It dangles relief for small businesses but hands the real prize to the rich. As someone who’s watched tax policy debates for years, I’m fed up with seeing workers and small firms get the short end of the stick. We need a tax system that lifts every community, not just the privileged few. Congress has a shot to set things right, to craft a policy that truly backs Main Street.
With TCJA provisions set to expire in December 2025, the stakes are high. Lawmakers face a clear choice: deepen inequality or build a fairer economy. For the sake of small businesses, workers, and the communities they sustain, let’s hope they choose the path of justice. Main Street isn’t just a catchphrase; it’s the lifeblood of America, and it deserves a tax policy that honors its role.