Problem
Given C*-algebras $\mathcal{A}$ and $\mathcal{B}$ with $\mathbb{1}_\mathcal{A}\in\mathcal{A}$.
Consider an algebraic morphism $\pi:\mathcal{D}\subseteq\mathcal{A}\to\mathcal{B}$ with $\mathbb{1}_\mathcal{A}\in\mathcal{D}$.
(More precisely, it is a *-morphism on a *-subalgebra.)
Is it contractive then: $$\|\pi[A]\|\leq\|A\|$$
The problem is that the domain may not be closed.
Moreover, the target space may have no identity at all.
Besides, the morphism may not preserve identities.
I'm writing this as an answer to have a little more space to write.
What you want to prove is not true: for a $*$-homomorphism to be necessarily contractive, you need the domain to be a C$^*$-algebra.
For instance, let $\mathcal A=C[0,1]$, $\mathcal B=\mathbb C$, $\mathcal D=\{\text{polynomials}\}$, and $\pi(p)=p(2)$. Then $\pi$ is clearly a $*$-homomorphism. And it is unbounded: $$ \|x^n\|=1,\ \ \pi(x^n)=2^n,\ \ \ n\in\mathbb N. $$ Of course, this $\pi$ cannot be extended continuously to $\mathcal A$.
And this illustrates what I was mentioning in the comments: when you try to consider the inverses of polynomials, those inverses--when they exist--are not polynomials.