The PA Chamber joined nearly 500 business groups led by the U.S. Chamber of Commerce in urging Congress to permanently extend the tax cuts from the 2017 Tax Cuts and Jobs Act (TCJA). These provisions, which are set to expire this year unless renewed by Congress, have been critical in raising wages, creating jobs, and helping businesses grow.

In a letter last week, the coalition urged lawmakers to adopt a current-policy baseline during budget reconciliation talks. This approach would provide businesses with the certainty they need to make long-term investments that fuel economic growth and job creation. The letter also warned that failing to extend these provisions would result in a $4 trillion tax increase for American families and businesses.

“Adopting a current-policy baseline would give lawmakers a real chance to deliver permanent tax relief for American families and employers and would not increase the deficit relative to current policy,” the letter states. “Thoughtful tax policy can drive economic growth while improving fiscal responsibility.”

For more on the important differences between current-law and current-policy baselines, check out our recent article, “Federal Tax Reform, Where Things Stand,” which breaks down what these terms mean and how they relate to the ongoing tax debate in Washington.

Meanwhile on Capitol Hill, the House of Representatives passed a budget resolution last week that includes a framework for $4.5 trillion in net tax cuts, paired with $2 trillion in additional spending cuts. The bill proposes extending the TCJA tax cuts, but Senate Republicans have raised concerns that the current House plan does not make the TCJA provisions permanent or include other tax priorities from the Trump administration.

Sen. John Barrasso (R-Wyo.), the No. 2 Senate Republican, told POLITICO last week, “I know my Senate colleagues are committed to, as is the president, permanence in the tax situation. And we don’t have yet in the House bill so we’re going to work together in a cooperative way.”

Additionally, the PA Chamber recently participated in a small business roundtable in Gettysburg, where business owners told Congressman John Joyce (PA-13) about the importance of extending the TCJA tax cuts and how they’ve benefited Pennsylvania businesses.

The PA Chamber will continue to work closely with the U.S. Chamber on behalf of our members to advocate for the permanent extension of these pro-business tax provisions.

Click here to watch a video recap of that event.