Release Date: Oct 18, 2010Contact: 888-249-NEWS
U.S. Chamber Surpasses 120,000 Letters to Capitol Hill on Impending Tax Hikes
WASHINGTON, D.C.—As members of Congress travel across their states and districts on the campaign trail, the U.S. Chamber today announced that its grassroots network has generated more than 120,000 letters to Capitol Hill urging Congressional action on the expiring tax rates. Since Congress has adjourned, the issue has continued to spur constituent concern both through letters to Congressional offices and as a reoccurring issue during political debates.
Though the Chamber weighs in on a wide range of legislative issues, the impending tax hikes have spurred the most grassroots outreach since the health care debate. In comparison to 40,000 Congressional contacts generated in 2008, the U.S. Chamber network has sent more than 2 million letters in the 111th Congress, with the majority focused on the impending tax increases, health care, and financial regulatory reform.
“At a time when we are experiencing lackluster economic growth, raising taxes on small businesses makes no sense," said Bruce Josten, executive vice president for Government Affairs at the U.S. Chamber. “Extending current tax rates for all taxpayers would boost consumer spending, bolster small businesses, relieve the tremendous sense of uncertainty paralyzing businesses of all sizes, and help create jobs.”
If Congress wants to stimulate economic growth, studies show that tax cuts are a much more powerful stimulant than direct government spending. Further, lower tax rates provide important economic benefits. The impact of increased taxes on successful small businesses is troubling.
- According to the nonpartisan Tax Foundation, roughly 1/3 of all business taxes are paid by owners of pass-thru businesses, which are often small in size and entrepreneurial. Allowing taxes to increase on small businesses will do measurable harm, as they create 60% to 80% of net new jobs and employ over half of the labor force.
- According to the Joint Committee on Taxation, if taxes increase on our most successful small businesses, a substantial share of new revenue (50% from the increase in the top two rates) can be directly attributed to income reported for pass-thru businesses by their owners. In other words, small businesses will bear a substantial portion of the higher tax rates.
- According to the nonpartisan Tax Foundation, about 39% of the $630 billion tax increase on high-income taxpayers proposed in President Obama’s 2011 budget would come from business income. This amounts to an extra $246 billion in taxes on business income over 10 years.
“Increasing taxes now will undermine economic recovery, choke off job creation, and take money out of the hands of the individuals and businesses that create jobs, spur investment, boost consumption, and promote economic growth,” Josten stated.
A recent CNBC poll found that 55 percent of the public believe "increasing taxes on any Americans will slow the economy and kill jobs." A panel of leading economists surveyed by CNNMoney.com also favors extending the cuts for all Americans, as do a growing number of Democrats in the House and Senate.
The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.
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