WSWA Gathers Tennessee Business Leaders to Discuss Tax Relief at a Roundtable with Congressman David Kustoff

Oct 03, 2024

MEMPHIS, TN

Local Business Leaders Emphasize Urgency of Extending Key Tax Deductions to Support Small and Family-Owned Businesses

MEMPHIS, TN, 10/03/2024 - Yesterday, Wine & Spirits Wholesalers of America (WSWA) gathered business leaders from across Tennessee for a discussion of the 199A Qualified Business Income Deduction at a roundtable attended by Congressman David Kustoff (R-TN-08).

The 199A deduction, which allows small and family-owned businesses to deduct up to 20% of their qualified business income, is set to expire at the end of 2025. This potential expiration could lead to significant tax increases for these businesses, threatening their competitive edge and accelerating economic consolidation.

The roundtable, moderated by WSWA Senior Director of Federal Affairs Dwayne Carson, was hosted at Athens Distributing Company's Memphis facility and was preceded by a warehouse tour that exemplified real world examples of the reinvestiture Athens has made in its facility, employees, and community since the deduction went into effect in 2017.

Participants:

• Congressman David Kustoff (R-TN)
• Dwayne Carson, Wine & Spirits Wholesalers of America (moderator)
• Johnny Aaron, Athens Distributing
• Jack Aaron, Athen Distributing
• Ryan Moses, Best Brands
• Jeff Adkins, Sport Clips
• Kasey Anderson, ACEC Tennessee
• Chris McLemore, Standard Electric
• Michelle Geiger, Hyatt
• Jim Brown, National Federation of Independent Business (NFIB)
• Patricia Jones, Jones Contractors
• Bob Turner, Southern Properties
• Trey Watkins, Watkins-Uiberall
• Tim Verner, PE, Fisher Arnol
• Katie Ligon, Memphis Travel
• Chip Greer, Bezl Enterprises
• Pete Keiser, CPA -Mud Lake Planting Co., Farm Bureau
• Doug Owings, Hotel Proprietor

Carson opened the discussion by highlighting Congressman Kustoff's efforts to advance the Main Street Certainty Act. Congressman Kustoff then provided a congressional update on the 2024 and 2025 tax packages and engaged in an informal Q&A session with the attending business leaders.

"In 2025, the Republican tax cuts that brought relief to families and businesses across the nation are set to expire," said Congressman Kustoff. "As a member of the House Ways and Means Committee, the chief tax writing committee in Congress, I am working to ensure these provisions are extended and taxes are not increased for Americans. That is why I held this roundtable today, to hear from local business leaders about their priorities for an upcoming tax package. As individuals and businesses grapple with rampant inflation, the last thing they need is Uncle Sam taking more of their hard-earned dollars out of their bank account."

"The vast majority of America's independent wine and spirits wholesalers are family-owned businesses that have been in operation for generations," said WSWA Senior Direct of Federal Affairs Dwayne Carson. Since 2017, our members have been able to invest billions across the country into their employees, facilities, and communities and the business leaders who joined us today have similar stories. The importance of this conversation and Section 199A to the well-being of small and family-owned businesses across Tennessee and the rest of the country can't be overstated."

Event participants ranged from the food and beverage industry to hospitality, real estate, travel, construction and cosmetology.

"As a family-owned business rooted in Nashville, the 199A tax deduction has been crucial in enabling us to reinvest directly into the local economy. With the savings from this deduction, we've been able to create new jobs, upgrade our facilities, and implement cutting-edge technologies that allow us to meet the unique demands of a rapidly growing city. Nashville's exponential growth requires tailored services and frequent deliveries that only a company like Best Brands, deeply connected to the community, can provide.

If the 199A tax deductions were to expire, we would be at a significant disadvantage compared to larger, multinational companies seeking to capitalize on Nashville's booming market. These corporations do not face the same challenges we do as a local, family-owned business. Losing this vital tax benefit would severely limit our ability to invest in further growth, impacting our ability to serve our customers and the community. We strongly urge Congress to extend this essential tax provision to protect small businesses like ours, which are the backbone of local economies nationwide," said Chief Executive Officer of Best Brands Ryan Moses.

"Small-business hotels are powerful economic engines in thousands of communities across the country. The small business tax deduction under Section 199A of the Tax Cuts and Jobs Act helps ensure these lodging establishments can continue to create jobs and serve visitors, which bring vital revenue and support nearby restaurants and retail establishments throughout their communities. We thank Rep. Kustoff for listening to the concerns of Memphis-area hoteliers regarding this important issue and look forward to working with him and other lawmakers to make the small business tax deduction permanent," said American Hotel & Lodging Association Interim President and CEO Kevin Carey.

Background on the 199A Qualified Business Income Deduction

The 199A deduction allows owners of sole proprietorships, partnerships, and S corporations to deduct up to 20% of their qualified business income. Set to expire at the end of 2025, the elimination of this deduction would impose higher taxes on individually- and family-owned businesses, putting them at a disadvantage in the marketplace.

About Congressman David Kustoff

In 2016 David Kustoff was elected to the U.S. House of Representatives. In 2018, 2020, and 2022 he was re-elected to the House of Representatives, and he currently is in his fourth term serving the 8th District of Tennessee. He serves on the House Committee on Ways and Means. The Ways and Means Committee is the oldest committee in the United States Congress and has jurisdiction over issues that affect West Tennesseans every day including taxes, healthcare, trade, and family support programs. In addition to serving on the full Committee on Ways and Means, Kustoff was also appointed to serve on the Subcommittees on Tax, Trade, and Social Security.

About Wine & Spirits Wholesalers of America

Wine & Spirits Wholesalers of America (WSWA) is the national trade association representing the distribution tier of the wine and spirits industry. WSWA is dedicated to advancing the interests and independence of distributors and brokers of wine and spirits. Founded in 1943, WSWA has more than 380 member companies across 50 states and the District of Columbia, and its members distribute more than 80% of all wine and spirits sold at wholesale in the United States. To learn more, visit www.wswa.org or connect with us on Facebook or Twitter.

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