GRAND PRAIRIE, Texas, Oct. 16, 2024 – Wine & Spirits Wholesalers of America (WSWA) hosted a roundtable with Congresswoman Beth Van Duyne (R-TX-24) yesterday, bringing together Texas business leaders to discuss the 199A Qualified Business Income Deduction, which is set to expire in 2025. The deduction allows small and family-owned businesses to deduct up to 20% of qualified business income. The potential expiration could lead to significant tax increases, undermining competitiveness and fostering economic consolidation.
The event, moderated by WSWA Senior Director of Federal Affairs Dwayne Carson, was held at Republic National Distributing Company’s (RNDC) Grand Prairie facility. The roundtable followed a warehouse tour showcasing the reinvestment RNDC has made since the deduction’s implementation in 2017.
"Having 25 Texas business leaders reiterating the importance of the Section 199A deduction emphasizes the value of our work," said Carson. "America’s family-owned wine and spirits distributors are reinvesting in their employees and communities. The potential expiration of Section 199A puts that at risk. We are extremely grateful to Congresswoman Van Duyne for her leadership on this issue."
Participants included representatives from various industries, such as roofing, real estate, hospitality, and finance. Business leaders shared how the 199A deduction has allowed them to reinvest in their businesses, grow, and support their communities.
Congresswoman Van Duyne highlighted her efforts to advance the Main Street Certainty Act, which would extend the 199A deduction. During the Q&A, she provided updates on the 2024-2025 tax packages.
“On top of the challenges created by inflation and high interest rates, North Texas small businesses are facing a massive tax increase next year. I’m working with my colleagues onthe Ways and Means Committee to create a tax code built for growth, opportunity, and empowering the American people. I appreciated hearing from our local job creators about the importance of renewing and expanding the 2017 Trump tax cuts, particularly the 199Adeduction that has allowed our family businesses to reinvest in our community,” said Congresswoman Van Duyne.
Event participants ranged from the food and beverage industry to hospitality, real estate, hospitality, retail, construction, banking, and more:
“Southern Glazer’s Wine & Spirits is a family-owned and operated business and we’re proud to have been able to reinvest in our employees, our operations, and our communities these past years. With these investments, we are better able serve our customers, including the thousands of small, family-owned bars, restaurants, groceries, and retailers that we deliver to. The potential expiration of the 199a deduction has immediate and powerful implications to not only our business and our employees, but to our customer base and the community at large. We’re thrilled to be hosting Congresswoman Van Duyne and fellow Texan business leaders to discuss this vital issue and call attention to the need for action,” said Southern Glazer’s Wine & Spirits EVP, Vintner Relations Mike Glazer.
“The small business tax deduction created through the Tax Cuts and Jobs Act has enabled Texas hoteliers to reinvest back in their businesses, hire additional employees, and enhance the guest experience. With this critical tax provision expiring next year, we thank Rep. Beth Van Duyne for her leadership on this issue and for listening to the concerns of the Texas hotel and lodging industry. We look forward to working with Congress to extend the small business deduction and other pro-growth tax policies,” said American Hotel and Lodging Association Interim President & CEO Kevin Carey.
"We are grateful for Congresswoman Van Duyne’s leadership to highlight tax relief that ensures our members have the support they need to reinvest in their businesses, employees and the community. Her efforts to keep tax rules, like the 199A deduction, stable help businesses pay better wages, improve employee benefits, and contribute to important causes like the Ronald McDonald House. We’re grateful for her dedication to the roofing industry’s success,” said National Roofing Contractors Association Director, Federal Affairs Deb Mazol.
“I wish to thank Representative Van Duyne for convening this Roundtable to highlight the importance of Section 199A to local businesses from various industries. As a community bank in the DFW metro area, Section 199A has strengthened my bank and allowed me to better serve our small businesses, families, and individuals. The expiration of Section 199A would make it harder for community banks to remain independent and promote consolidation in the banking industry. This would be particularly harmful to American small businesses that rely on community bank credit. Leveraging their insight into local economic trends, community banks make 60 percent of small business loans, which is far above their share of bank assets,” said Vice Chairman and Corporate President, Bank of the West Cynthia L. Blankenship.
Participants:
Congresswoman Beth Van Duyne (R-TX)
Dwayne Carson, WSWA (moderator)
Mike Glazer, Southern Glazer’s Wine & Spirits
Michael Dubois, Republic National Distributing Company
Todd Shays, Queen Bee Salon and Spa
Trevor Reed, Volkert
Gwen Perez, Freese & Nichols
Brian Fleming, Grand Prairie Theater
Lance Van Winkle, King of Texas Roofing
Jayne Williams, KPost Roofing and Waterproofing
Jason Stanley, IB Roof Systems
Kyrah Coker, National Roofing Partners
Terry Montesi, Trademark Property Company
Deborah Mazol, National Roofing Contractors Association
Phillip Hinch, ICSC
Brian Reardon, Reardon Consulting
James Payne, NCANET
Mark Huston, Lone Star Electric
Jeff Varnell, Coppell Realty
Cynthia L. Blankenship, Bank of the West
Laurie Sprouse, Ultimate Ventures
Shawn Glenn, FASTSIGNS
Mark Glenn, FASTSIGNS
Phillip J. Hoppman, Pebcor Holdings Corporation
Greg White, Westin Galleria Dallas
Holly L. Green, Brettco Roofing
Background on 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. If not extended, the deduction will expire at the end of 2025, increasing taxes for individually and family-owned businesses and reducing their competitiveness.
About WSWA
Wine & Spirits Wholesalers of America (WSWA) is the national trade association representing the distribution tier of the wine and spirits industry. Founded in 1943, WSWA has more than 380 member companies across all 50 states. Its members distribute over 80% of all wine and spirits sold at wholesale in the U.S. To learn more, visit www.wswa.org.