Key Vote Letter on S. 1723, the “Teachers and First Responders Back to Work Act of 2011”
October 20, 2011
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, strongly opposes S. 1723, the “Teachers and First Responders Back to Work Act of 2011,” because this legislation would establish a new tax on small businesses, entrepreneurs and job creators, and impair their ability to provide the jobs and economic growth needed to get the American economy back on track. The Chamber urges you to vote against cloture on the motion to proceed to this measure.
At its essence, this legislation would pit one sector hard-hit by the recession against another by creating a new tax hike on private sector job creators to provide $35 billion for local government and school payrolls.
This surtax would target small businesses and investors that pay taxes at the individual rate. The bill proposes a new .5% surtax on incomes over $1 million, which would apply to modified adjusted income before itemized deductions and includes all income such as wages, capital gains, dividends, and interest.
Beginning in 2013, for those earning over $1 million:
- Total marginal federal income tax rates would rise to almost 45%;
- Dividends taxes would increase 193% over current levels to a rate of 44%; and
Capital gains taxes would increase 62% over current levels to create a total
tax burden of 24.3%.
New taxes are not the solution to the still languishing U.S. economy. The Chamber believes that enabling states to spend $35 billion on the backs of the entrepreneurs relied upon to create new jobs in the American economy would have a significant chilling effect on private sector job creation.
The Chamber strongly opposes S. 1723, and may include votes on, or in relation to, this issue—including votes on the motion to proceed, in our annual How They Voted scorecard.
R. Bruce Josten