Keeping Taxes Low on Hardworking Americans and Businesses
Higher Taxes—Bad for the Economy, Bad for Business
The U.S. Chamber is committed to pro-growth tax policies that preserve America’s global competitiveness. We oppose tax increases that take money away from consumers and businesses that could have been invested in new products, equipment, and employees.
America has succeeded because we reward success and risk taking. Expanding the tax burden fundamentally undermines America’s commitment to free enterprise.
The last thing an uncertain U.S. economy needs is a large tax increase. For businesses, especially small and medium size, a tax increase during a soft economy could push many companies into bankruptcy.
Preventing the LARGEST Tax Increase in American History
Allowing the 2001 and 2003 tax cuts to expire would have a severe impact: - The overall cost of this increase would be $775 billion over four years and would be the largest tax increase in American history (U.S. Department of the Treasury). - About 116 million taxpayers would see their taxes go up by an average of $1,800 (The White House). - Small businesses that pay their taxes based on individual rates could see their effective rate rise to more than 44% (H.R. 3970; expiration of 2001 and 2003 Bush tax cuts).
The U.S. Chamber’s Pro-Growth Tax Agenda
In addition to making the 2001 and 2003 tax cuts permanent, the U.S. Chamber is fighting for other pro-growth tax policies: - The alternative minimum tax (AMT) should be repealed or substantially reformed to protect taxpayers, including a growing number of the middle class. - Corporate tax rates should be reduced. While foreign economic competitors like Germany have cut corporate taxes, federal and state lawmakers are proposing big increases that will hurt American companies.
All 50 states have a combined federal and state corporate tax rate higher than France, which is ranked fifth in the world for highest corporate taxes (The Tax Foundation).
A reduction in corporate capital gains tax rates from 35% to 15% would unlock almost a trillion dollars of locked-in capital gains (Tax Notes, March 6, 2006).
The PAYGO rules used by Congress are forcing a growing search for taxes to pay for new spending or other cuts. The U.S. Chamber is fighting against backdoor taxes on business.
The Chamber is leading a coalition of 85 associations to repeal the 3% tax withholding law, which requires federal, state, and local governments to withhold 3% (as a prepayment on income taxes) from payments for goods and services starting in 2011.
Economic Policy Division
The Economic Policy Division provides first-rate analysis of the economy and the factors that impact economic well being. Additionally, the Economic Policy Division encompasses small business, tax, antitrust, privatization and procurement policies, and their respective committees.
Friends of the U.S. Chamber is a nationwide grassroots network dedicated to pro-growth policies that can strengthen the American economy. The network was created as part of the U.S. Chamber of Commerce's initiative to mobilize constituents to advocate on behalf of pro-business legislation.
Friends of the U.S. Chamber is composed of Americans like you from every walk of life -- small business owners, college students, educators, bankers, retirees, health professionals and others -- all committed to ensuring the strength of our economy and American enterprise.
Join our network and add your voice to the national debate on critical issues that impact you and your community. Use this forum to stay informed -- ensuring our nation's long-term prosperity for generations to come.
