Advocacy News – May 1, 2025
What’s happened: Congress has taken early steps to make the 2017 Tax Cuts and Jobs Act (TCJA) permanent. However, as the tax debate progresses, some policymakers have shown support for weakening these pro-growth reforms by capping or otherwise limiting the deduction for state and local business taxes (B-SALT deduction).
Why it matters: Limiting the B-SALT deduction could lead to a massive tax increase on businesses of all sizes — potentially raising taxes by over $600 billion — plus, undermining the pro-growth elements of the TCJA that Congress otherwise seeks to preserve.
What we’re doing: The MI Chamber is working with its partners around the country urging Congress to prevent a backdoor tax increase on businesses by preserving the B-SALT deduction. We have signed onto a coalition letter supporting this effort and will continue to monitor the situation as it develops.
Go deeper: Learn more about B-SALT and reasons why to preserve it.