The Wine & Spirits Wholesalers Association (WSWA) has formally called on Congress to extend Section 199A of the Tax Cuts and Jobs Act (TCJA) of 2017, which is set to expire in 2025. In a letter to House Ways and Means Committee Chairman Jason Smith and Ranking Member Richard Neal, the WSWA emphasized the provision’s vital role in supporting family-owned businesses and promoting job creation, community investment, and economic growth.
Section 199A offers tax breaks on qualified business income, a benefit that has been instrumental in helping nearly 4,200 businesses and more than 97,800 employees since its introduction. This tax relief has allowed these businesses to stay competitive against larger, publicly traded companies with lower tax rates.
WSWA President and CEO Francis Creighton pointed out that the provision has been especially crucial for family-owned businesses, enabling them to navigate challenges like the COVID-19 pandemic and inflation. Creighton warned that without an extension, many businesses would face tough decisions about labor, infrastructure, and long-term operations.
Family-owned wine and spirits distributors, often multi-generational enterprises, compete with larger firms that have more resources. Without Section 199A, these smaller businesses would face a nearly doubled tax burden compared to multinational corporations.
Dina Opici, president of Opici Family Distributing and president of WSWA, stressed that the tax deduction has enabled family businesses to invest in fleets, facilities, and local communities, helping them survive and thrive since its inception in 2017.
Research by John Dunham and Associates indicates that Section 199A has generated between $44 million and $54 million in annual investments, totaling between $304 million and $380 million over the years. These investments have allowed distributors to modernize infrastructure and support local initiatives. For example, Michigan’s Great Lakes Wine & Spirits has used the savings to upgrade its facilities and contribute to public services like police and fire departments.
In 2024, the WSWA has increased its lobbying efforts, hosting roundtables and tours to demonstrate the positive impact of Section 199A. In October, Texas business leaders met with Congresswoman Beth Van Duyne in Grand Prairie to discuss the importance of preserving the tax policy. Van Duyne emphasized the need to prevent what she called “the single largest tax increase in American history,” asserting that extending these provisions is essential for small businesses and working families.
The WSWA continues to urge Congress to act swiftly to ensure that family-owned businesses can continue to invest in their employees and communities. The organization believes extending Section 199A is crucial for economic sustainability and the fairness of the tax system.
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