Letter Urging Congress to Act Expeditiously to Extend the Expiring 2001 and 2003 Tax Rates and the Business Tax Provisions that Expired at the End of 2009
November 15, 2010
TO THE MEMBERS OF THE UNITED STATES CONGRESS:
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, strongly urges Congress to act expeditiously to end the tax uncertainty plaguing the
business community by extending the expiring 2001 and 2003 tax rates and the business tax
provisions that expired at the end of 2009.
A long term extension, preferably permanent, of all current tax rates would, in one bold
stroke, boost investor, business, and consumer confidence by taking the uncertainty of tax policy
off the table. It would leave hard-earned income in the hands of the individuals and businesses
that earned it and allow them to spur investment, boost consumption, promote economic growth,
and create jobs. Further, without expeditious Congressional action to extend current marginal
tax rates, millions of Americans will face greater withholding for taxes from their hard-earned
paychecks in six weeks.
Another major obstacle to recovery lurks. Thousands of U.S. businesses and individual
taxpayers currently face major tax increases because tax provisions – such as the R&D credit,
active financing exception, and CFC look-thru rule – have expired. An extension of these vital
provisions would bring more certainty in U.S. tax law, foster more effective business decisions,
and encourage investment. Moreover, the Administration asked Congress to extend the tax
provisions as part of the President’s 2010 budget request.
While the Chamber strongly supports the extension of these provisions, we maintain our
long-term position that extensions of current tax policy should not be offset with permanent tax
increases. The Chamber believes that no one should have their taxes raised during a time of
economic weakness – not individuals, not small businesses, not large businesses. Job creators
are especially sensitive to tax rates and any tax increase right now would only hinder the already
too weak recovery.
The Chamber urges Congress to act expeditiously to remove uncertainty and address
these looming tax increases by extending all the expired and expiring tax provisions by year end,
and looks forward to working with Congress to keep the economy on the road to recovery.
R. Bruce Josten