Letter Opposing the Proposed Senate Budget Resolution for Fiscal Year 2009
March 13, 2008
TO THE MEMBERS OF THE UNITED STATES SENATE:
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, opposes the proposed Senate Budget Resolution for Fiscal Year 2009.
The Senate Budget Resolution calls for huge tax increases on businesses as part of the proposed $3.1 trillion in federal spending for 2009. Specifically, it would allow the 2001 and 2003 tax cuts to expire in 2010; a policy that the Congressional Budget Office estimates would result in a tax increase of $683 billion over five years. These tax cuts include reduced rates for individual income taxes affecting the majority of small businesses, reduced rates on capital gains and dividends, and estate tax repeal. Given the weakened condition of the United States' economy, the Chamber cannot support a federal budget that would so significantly increase taxes on small businesses and the American public. Congress should not enact tax increases on the heels of the swift enactment of economic stimulus legislation to respond to the weakening in the economy.
At a time when the American people, workers, and companies are struggling to pay their mortgages, struggling with rising health care costs, and struggling with rising food and gas costs, the American public cannot afford a tax increase. By ignoring the looming expiration of the 2001 and 2003 tax cuts, the Senate Budget Resolution would place the economy in further jeopardy and would saddle American taxpayers with the largest tax increase in the nation's history.
The Chamber also understands that the House bill will include "reconciliation instructions" that allow for further tax increases to be added to the budget by House-Senate conference committee, and passed without being voted upon by the full Senate. The Chamber opposes this provision.
For these reasons, the Chamber urges you to vote against the Senate Budget Resolution that allows the 2001 and 2003 tax cuts to expire resulting in increased taxes on individuals and small businesses in the future.
R. Bruce Josten