Tax Relief Guarantee Act of 2002 (H.R. 586)
April 17, 2002
To Members of the United States House of Representatives:
The U.S. Chamber of Commerce, the world's largest business federation, representing more than three million businesses and organizations of every size, sector, and region, strongly urges you to support H.R. 586, the Tax Relief Guarantee Act of 2002. This very important legislation would make permanent the provisions of the Economic Growth and Tax Relief Reconciliation Act (P.L. 107-16 – "the Act"). The Act has been instrumental in promoting economic growth and job creation, and was vital in helping our economy weather the post-9/11 storm.
In addition to its immediate economic stimulus, the Act contains many important measures that will benefit the economy in the longer run, as well. It reduces marginal income tax rates on individuals and small business taxpayers, such as S corporations, sole proprietors, and partners. This increases disposable income in the hands of consumers, thereby stimulating the economy. It also includes a phase-out of the death tax, which is one of the most inefficient and wasteful taxes in the Code. Also included are a number of other important measures which makes it easier for businesses to offer retirement plans to their workers and help them save for their retirement.
Making these provision permanent is vital to achieve their long-term benefits. Unfortunately, besides including beneficial relief, the Act also provides for a sunset of those provisions. Such a sunset would significantly increase uncertainty, reduce the ability to plan for the long-term, and minimize the beneficial effects of these tax cuts. H.R. 586 would make these tax cuts permanent and enable the Act's reforms to achieve their full intended results.
Again, we ask that you support the Tax Relief Guarantee Act of 2002, which would accomplish this goal in its entirety. We will consider using votes on this important legislation in our annual How They Voted ratings.
R. Bruce Josten
Executive Vice President, Government Affairs
U.S. Chamber of Commerce