Jobs Agenda: Taxes

As we face the prospect of tax reform, it is important to consider the different types of fundamental tax reform, the international aspects of tax reform, and the kinds of transitions rules that are needed should the United States shift to a new system of taxation.

» Learn more about potential tax reform

Priorities

The U.S. Chamber is committed to pro-growth tax policies that preserve America’s global competitiveness, and it opposes tax increases that reduce businesses’ ability to grow, invest, and create jobs. In these fragile economic times, it would be the height of economic folly to target business—or any group of Americans—for a major tax increase.

The Facts

The U.S. Chamber’s Pro-Growth Tax Agenda

The Chamber urges Congress and the administration to enact a pro-growth tax agenda to bring rates in line with our global competitors and make compliance simpler and easier.

To learn more visit, uschamber.com/issues/index/econtax/default.

• Small business owners—including taxpayers earning more than $250,000 (married) and $200,000 (single)—would see their taxes increase by $970 billion over 10 years under President Obama’s FY11 budget proposal. The administration’s plan would:
  • Reinstate the 36% and 39.6% individual income tax rates.
  • Reinstate the personal exemption phaseout and limitations on itemized deductions.
  • Impose a 20% rate on capital gains and dividends.
  • Limit the tax rate at which itemized deductions reduce tax liability.
• In addition to tax increases on small business, the Obama budget proposes $468 billion over 10 years of new taxes on American businesses.
  • This includes $122 billion over 10 years on American companies operating globally by changing the deferral regime and the foreign tax credit rules, both of which currently keep American companies competitive in the face of double taxation.
  • Businesses would face tax increases from, for example, the repeal of the LIFO accounting method and punitive taxes on the oil and gas and coal industries.

The U.S. Chamber’s Pro-Growth Tax Agenda

The Chamber urges Congress and the administration to enact a pro-growth tax agenda to bring rates in line with our global competitors and make compliance simpler and easier.

• Prevent a complete rollback of the 2001 and 2003 tax cuts.
• Eliminate—or substantially reform—the alternative minimum tax (AMT) to protect a growing number of individuals and businesses, including many middle-class Americans.
• Retool the corporate tax structure to reduce what is one of the highest marginal corporate income tax rates in the developed world. Reducing corporate tax rates will stimulate economic recovery and attract foreign and domestic investment, which will create American jobs.
• Reduce the budget deficit through higher economic growth, spending restraint, and entitlement reform—not higher taxes.

To learn more visit, uschamber.com/issues/index/econtax/default.