National Sign-On Letter to Extend the Expiring 2001 and 2003 Tax Rates and Business Tax Provisions

TO THE MEMBERS OF THE UNITED STATES CONGRESS:

We, the undersigned companies, chambers, and trade associations strongly urge Congress to end the tax uncertainty plaguing the business community by extending the expiring 2001 and 2003 marginal tax rates, as well as dividend and capital gains tax rates, and the business tax provisions that expired at the end of 2009.

A permanent extension 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 we support the extension of all these provisions, we believe that the extensions of current tax policy should not be offset with permanent tax increases. 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.

We urge Congress to act expeditiously to remove uncertainty and address these looming tax increases with a long term extension of all the expired and expiring tax provisions by year end, and look forward to working with Congress to keep the economy on the road to recovery.