Changes in Business Interest Deductions

Changes in Business Interest Deductions:

Proposed reforms suggest limiting business interest deduDozens of major individual and business tax policies from the 2017 Tax Cuts and Jobs Act (TCJA) will expire at the end of 2025. The Congressional Budget Office (CBO) estimates that extending those expiring tax cuts will cost $4 trillion over 10 years. With U.S. debt held by the public already at $28 trillion and rapidly climbing, lawmakers must offset, or pay for, tax cut extensions to avoid making the fiscal situation worse. BPC evaluated a series of offset options, working with the Tax Foundation’s dynamic Taxes and Growth (TAG) macroeconomic model on revenue and economic estimates. While not BPC endorsements, these policy options highlight the tradeoffs inherent in achieving fiscally responsible tax reform.PC endorsements, these policy options highlight the tradeoffs inherent in achieving fiscally responsible tax reform.