Doug Mastriano, a Pennsylvania state senator representing District 33, said that Senate Bill 396 would provide the state’s small businesses with greater tax fairness by allowing federal deductibility benefits. He made this statement in an X post on April 11.
“mall businesses in Pennsylvania are anything but small. They’re a force to be reckoned with as they employ about half of the state’s private workforce – 2.5 million individuals,” said Mastriano. “Senate Bill 396 would support the commonwealth’s small businesses and pass-through businesses by affording them the benefit of federal deductibility as an expense of the electing business. My bill would provide federal tax income benefits and put federal tax dollars back into the pockets of Pennsylvania’s small business owners that could be used for reinvestment and growth – creating more jobs for commonwealth residents. If we want to keep the small businesses that have already set up shop in the commonwealth and attract even more, we have to treat and tax them fairly.”
According to the U.S. Small Business Administration’s 2023 Small Business Economic Profile for Pennsylvania, small businesses employed approximately 2.5 million people, which accounts for 46.6% of the state’s private-sector workforce. The report emphasizes their crucial role in job creation and economic growth within the state.
The Pennsylvania Chamber of Business and Industry has raised concerns regarding the state’s tax structure, pointing out that small businesses often face higher tax burdens compared to larger corporations. This disparity can impede small business growth and competitiveness. The Chamber supports tax reforms to ease these burdens and foster a more equitable business environment.
The National Federation of Independent Business (NFIB) reports that the 20% Small Business Deduction, established under the 2017 Tax Cuts and Jobs Act, has helped create a more level playing field for small businesses. This deduction allows qualifying businesses to deduct up to 20% of their income, thereby reducing their effective tax rates. However, it is scheduled to expire at the end of 2025, which could potentially increase tax liabilities for many small businesses.
Mastriano has represented Pennsylvania’s 33rd Senatorial District since 2019, covering Adams and Franklin counties. A retired U.S. Army colonel, he served for over three decades, including deployments during the Cold War and Operation Desert Storm. His legislative priorities include supporting veterans, promoting fiscal responsibility, and advocating for small businesses.
