US, Detroit Regional Chamber Urge Tax Cuts and Jobs Act Extension 

The U.S. Chamber is urging Congress to establish a current-policy baseline and extend the Tax Cuts and Jobs Act (TCJA). The Detroit Regional Chamber joins the U.S. Chamber in advocating for these actions and encourages Chamber members to contact their U.S. Congress representatives and both senators.

Under a current-policy baseline, preventing the scheduled expiration of key individual, business, and estate tax policies enacted in the TCJA would cost around $4 trillion over 10 years. On the other hand, a current-policy baseline would recognize that merely avoiding a scheduled tax increase should not be counted as a new tax cut; only new tax policies or changes to current policy would be considered to have a budgetary impact.  

• Pass-through income deduction, which allows S corporations to deduct up to 20% of qualified business income. 

• 50% of Michigan’s workforce work at a business that is a pass-through entity. This deduction provides over $4.6 billion to Michigan businesses.  

• Research and development deduction would be eliminated. 

• Business interest deduction would be eliminated. 

• Current marginal tax rates are set to rise across the board. 

• Standard deductions would decrease from $14,600 to $8,300 for single filers and $29,200 to $16,600 for joint filers. 

• The $10,000 state and local tax (SALT) deduction cap will be $0. 

What is not expiring is the reduction of the corporate tax rate from 35% to 21%. While it is unlikely to return to 35% during the Trump administration and the Republican trifecta, there is always a looming threat of anti-business legislators taking control of a party to win over key demographics. U.S. President Donald Trump promised on the campaign trail to reduce the rate again to 15%, though that may be unlikely considering all other promised cuts.