This year, lawmakers have the opportunity to advance smart, pro-growth tax policies and avoid the largest tax increase in American history, which will otherwise occur when key provisions of the 2017 Tax Cuts and Jobs Act (TCJA) expire at the end of 2025.
In 2017, Congress permanently lowered the corporate income tax rate by 14 percentage points—from 35% to 21%—as part of the TCJA.
To ensure that pass-through businesses like sole proprietorships, partnerships, and S corporations would not be placed at a major tax disadvantage relative to C corporations, Congress also created a new 20% deduction for qualified business income (QBI) in section 199A of the Internal Revenue Code.
Our new QBI Tax Increase Calculator is designed to provide a simplified illustration of the potential tax cost to Main Street business owners if Congress allows section 199A to expire at the end of this year, based on the estimated 2026 tax brackets provided by the Tax Foundation.
