Letter Regarding Legislation Expected to be Considered in the Senate to Extend Certain Expiring 2001 and 2003 Tax Cuts While Failing to Avert a Massive Tax Increase on American Small Businesses
December 3, 2010
TO THE MEMBERS OF THE UNITED STATES SENATE:
The U.S. Chamber of Commerce, the world’s largest business federation representing the
interests of more than three million businesses and organizations of every size, sector, and
region, urges Congress to approve legislation to avert a massive tax increase on American
businesses and taxpayers. Such legislation must not impose a massive tax increase on American
small businesses. While legislation expected to be considered in the Senate would extend certain
expiring 2001 and 2003 tax cuts and expired business tax provisions, most proposals fail to
address the massive tax hike that small businesses face on January 1, 2011. Increasing taxes on
small businesses now will undermine economic recovery, choke off job creation, and take money
out of the hands of individuals and businesses that create jobs, spur investment, boost
consumption, and promote economic growth.
The failure to extend current tax rates for all taxpayers is a tax hike on successful small
businesses, which are America’s job creators and an important source of innovation and risktaking.
This tax hike on small businesses hurts the entire economy. Since employees and
employers, suppliers and end users, and consumers and investors are all interdependent, a tax
increase on any taxpayer will have detrimental effects across the board by reducing investment,
stifling job creation, and smothering economic growth. Quite simply, a failure to extend all
current tax rates threatens to push the U.S. economy back into a recession.
Time is running out for Congress to avoid the tax increase that will be caused by the
expiration of the 2001 and 2003 tax cuts – including the tax increase on small businesses. A
workable bipartisan solution exists: extend all current tax rates. Such legislation would leave
hard-earned money in the hands of small business owners who create jobs, spur investment,
boost consumption, and promote economic growth.
The Chamber strongly opposes the legislation expected to be considered by the Senate
because it fails to prevent a massive tax increase on small businesses. The Chamber also renews
our call to Congress to approve legislation to avert a massive tax increase on American
businesses and taxpayers.
R. Bruce Josten