The Elmhurst Chamber of Commerce and Industry, aligning with the United States Chamber of Commerce, has signed a letter to Congress urging federal lawmakers to preserve the B-SALT deduction to prevent a hidden tax increase on American businesses.
Expressing concern, the U.S. Chamber notes that some policymakers support limiting the deduction for state and local business taxes.
The U.S. Chamber emphasizes that capping the B-SALT deduction could significantly hurt the positive effects of the 2017 tax cuts and ultimately harm the U.S. economy by reducing the resources businesses have to invest, hire people and grow.The state and local tax (SALT) deduction permits taxpayers who itemize when filing federal taxes to deduct certain taxes paid to state and local government.
The Tax Cuts and Jobs Act (TCJA) capped the deduction at $10,000 per year, consisting of property taxes plus state income or sales taxes, but not both.