The impending 2025 tax cliff is an issue that affects businesses and individuals alike. The U.S. Chamber has released the following statement on the issue:
Perhaps the most important decision impacting how—and for how long—Congress will address the impending 2025 tax cliff will be made during the initial budget resolution process: whether to adopt a “current-law” or “current-policy” baseline. Under a current-law baseline, preventing the scheduled expiration of key individual, business, and estate tax policies enacted in the 2017 Tax Cuts and Jobs Act (TCJA) would be considered to cost around $4 trillion over 10 years.
A current-policy baseline, on the other hand, 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. Here are four reasons why it’s imperative that Congress adopt a current-policy baseline.
-
A Current-Policy Baseline Reflects Reality
-
A Current-Policy Baseline Would Enable Congress to Make the Temporary Provisions of the TCJA Permanent, Maximizing the Potential for Economic Growth
-
A Current-Policy Baseline Doesn’t Impede Congress from Addressing Overspending
-
Using a Current-Policy Baseline Would Remove the Current Bias in Favor of Spending Increases and Tax Hikes
WY We Care: Wyoming businesses depend on stability, but the looming 2025 tax cliff threatens to shake that foundation. Unexpected tax hikes mean tougher decisions, fewer opportunities, and a direct hit to local businesses, ranchers, and entrepreneurs.
Like the U.S. Chamber, we believe Congress must act wisely to prevent unnecessary financial strain. The approach they take will have real consequences for Wyoming’s economy. We’re fighting for smart, sustainable tax policies—because when businesses thrive, so does Wyoming.
Go deeper: To learn more about this U.S. Chamber stance, check out the full press release on their website.
Trending Now
A Notebook that Takes Notes for You?
