Standing with Business: St. Charles Chamber Urges Congress to Preserve B-SALT

The St. Charles Regional Chamber is proud to announce its participation in a national coalition led by the U.S. Chamber of Commerce, advocating for the preservation of the state and local business tax deduction—commonly known as the B-SALT deduction. This coalition comprises chambers of commerce and business associations from across the country, united in urging Congress to maintain this critical component of the federal tax system.

Click here to view the letter and a list of coalition members.

Why the B-SALT Deduction Matters

The B-SALT deduction allows businesses to deduct state and local taxes—such as income, property, and sales taxes—when calculating their federal taxable income. These taxes are not optional; they are ordinary and necessary expenses incurred in the course of doing business. Eliminating or capping this deduction would effectively tax businesses on income they haven't actually earned, as they would be unable to deduct these mandatory expenses.

For example, a company with $100 in net income that pays $6 in state and local taxes would currently deduct those taxes, paying federal income tax on $94. Without the B-SALT deduction, the company would pay federal tax on the full $100, increasing its tax liability and reducing funds available for reinvestment, hiring, and growth.

The Economic Impact

Limiting the B-SALT deduction would have far-reaching consequences:

• Increased Tax Burden: Businesses of all sizes would face higher federal tax liabilities, with estimates suggesting an additional $600 billion in taxes over the next decade.

• Reduced Competitiveness: Higher effective tax rates could make U.S. businesses less competitive globally, as they would have fewer resources to invest in innovation and expansion.

• Job Losses: Economic analyses indicate that eliminating the B-SALT deduction could lead to significant job losses, with one study estimating over 21,000 full-time equivalent jobs at risk.

Our Commitment

The St. Charles Regional Chamber is committed to supporting policies that foster economic growth and sustainability for our local businesses. By joining this coalition, we aim to ensure that the voices of our regional business community are heard in Washington, D.C.

We urge Congress to preserve the B-SALT deduction, recognizing its importance in maintaining a fair and effective tax system that supports businesses' ability to thrive and contribute to our economy.

For more information on our advocacy efforts and how you can get involved, please visit our Public Policy Page.