Multi-industry Letter Opposing the Imposition of a New Tax on Banks and Financial Institutions

The Honorable Sander Levin
Chairman
Committee on Ways and Means
U.S. House of Representatives
Washington, DC 20515

The Honorable Dave Camp
Ranking Member
Committee on Ways and Means
U.S. House of Representatives
Washington, DC 20515

Dear Chairman Levin and Ranking Member Camp:

The undersigned organizations and institutions representing the interests of hundreds of thousands of businesses, small and large, from all sectors of the economy, employing tens of millions of American workers, as well as non-profit public policy groups interested in fostering entrepreneurship, strongly oppose the imposition of a new tax on financial institutions. The imposition of taxes on capital formation could have devastating impacts upon the American economy's ability to grow and create jobs and place American companies at a global competitive disadvantage.

A tax on banks and financial institutions could reduce loan funds available which are needed for existing businesses to expand and could also reduce the venture capital funds needed to assist new businesses. Business expansion is necessary for job growth and economic recovery. The imposition of such a tax may adversely impact lending, possibly reducing expansion and job creation, thereby jeopardizing the nascent recovery of a very fragile economy. The Congressional Budget Office March 4, 2010, letter to Senator Grassley recently underscored these very real concerns.

A tax on banks and financial institutions, regardless of form, is misguided, would foster continued uncertainty and could have adverse impacts on economic recovery efforts, including efforts to stimulate growth and job creation. We request that consideration of such a tax be rejected.

Sincerely,

Americans for Tax Reform
Competitive Enterprise Institute
Institute of International Bankers
Mortgage Bankers Association
National Association of Manufacturers
Property Casualty Insurers Association of America
The Financial Services Roundtable
The U.S. Chamber of Commerce

Cc: The Members of the Committee on Ways and Means