The 2017 Tax Cuts and Jobs Act (TCJA) was a historic win for American businesses. By slashing the corporate tax rate from 35% to 21%, introducing a 20% deduction for pass-through businesses, and modernizing outdated tax structures, the law sparked investment, raised wages, and helped grow the U.S. economy.
But now, some policymakers are considering rolling back key parts of that success—specifically, by capping or eliminating the state and local business tax deduction (the “B-SALT” deduction). This move would undermine one of the most fundamental principles of tax fairness: businesses should be taxed on actual income, not phantom profits.
Here’s why that matters:
- Taxing Phantom Profits: State and local taxes are not optional—they’re a cost of doing business. If companies can’t deduct these expenses, they’ll end up paying federal taxes on income they never really earned.
- A Backdoor Tax Hike: Removing the deduction would raise effective business tax rates by as much as 1.25 percentage points or more, hitting small and mid-sized businesses the hardest.
- A Competitive Setback: Even after the TCJA, the U.S. corporate tax rate is still above the OECD average. Further increases would disadvantage U.S. businesses globally, raising consumer prices and shrinking wages here at home.
- A $658 Billion Burden: Capping B-SALT deductions across income, property, and pass-through taxes would result in over $650 billion in new taxes over the next decade—paid for by America’s job creators.
WY it Matters: We’re actively tracking this legislation because when tax policy shifts, it impacts Main Street just as much as Wall Street. The B-SALT deduction isn’t a loophole—it’s common sense. It helps ensure that U.S. businesses, including those here in Wyoming, stay competitive, grow jobs, and reinvest in their communities. Pro-growth tax policy keeps our economy strong, and we’re watching closely to protect what matters most to Wyoming businesses—your bottom line.
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The Lander Chamber of Commerce is a Wyoming Chamber of Commerce member and shares its benefits with Lander Chamber members.
The Wyoming Chamber of Commerce is the driving force behind Wyoming’s business success. We believe in free enterprise, local leadership, and economic growth that benefits every corner of our state. Whether you’re a small business owner, an industry leader, or an entrepreneur with a bold vision, we are here to advocate, elevate, empower, and unite Wyoming’s business community.
