Advocacy News – Feb. 22, 2024
What’s Happening? In 2017, the federal government under the Trump Administration passed the Tax Cuts and Jobs Act (TCJA). Under the act, the corporate income tax rate was reduced from 35% to 21%, and a 20% deduction for pass-through businesses was created. However, a sunset of the pass-through business deduction provision is on the horizon for 2025 if Congress does not extend the timeline or make the deduction permanent.
Congress can make this deduction permanent by passing the “Main Street Tax Certainty Act.”
- This deduction is an important component to strengthening Michigan businesses and subsequently our economy, as 50.39% of Michigan’s employment would be affected by this tax increase.
- According to the U.S. Chamber of Commerce, this deduction has brought a roughly $4.67 billion tax benefit to the Great Lakes State.
Go deeper: Read an analysis of this legislation by the U.S. Chamber of Commerce or contact Leah Robinson at lrobinson@michamber.com.