WR has joined a broad coalition of business organizations in urging Congress to preserve the deduction for state and local business taxes, commonly known as the B-SALT deduction. In a recent letter addressed to lawmakers, the coalition warned that limiting or eliminating this deduction would amount to a significant tax increase on businesses of all sizes across the country.
The B-SALT deduction allows businesses to deduct mandatory state and local taxes as necessary operating expenses. Proposed changes to cap or eliminate this deduction could result in over $600 billion in additional taxes over the next decade, affecting pass-through entities, corporations, and property owners alike.
The letter emphasizes that the deduction is a longstanding and essential component of the federal tax system, and that removing it would undermine the economic gains supported by the 2017 Tax Cuts and Jobs Act. These gains include wage growth, job creation, and increased investment.
WR and its partners call on Congress to maintain this critical deduction and avoid inadvertently reversing key progress made toward a more competitive business environment.
Read the full letter here.
