Opposing the Tax Increase - and in Good Company
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Isn't it rich that some in Washington are accusing the Chamber of being self-serving for opposing the largest tax increase in history? To some degree, however, they are right, as some 95% of our members are small businesses and this tax increase will fall disproportionately on them. As we've noted in this space before, the proposed tax on those earning above $250,000 would cover some 750,000 small businesses, including 50% of all small business income and 25% of the total workforce. So yes, as the advocates of small business and free enterprise, we will fight to protect our members from this tax tsunami. To that end, we have sent a letter to every Member of Congress, urging them to act at once to extend current rates before they expire at year's end.
But we are not alone. CNN Money says, "With income tax rates set to go up on Dec. 31, Congress is hotly debating what to do next. But most economists agree: Keep them where they are." Respected economist Allen Sinai tells the Associated Press that raising taxes on small businesses "could reduce the flow of money into private equity firms, venture capital and other investments that 'grease the wheels of entrepreneurship in the U.S. economy.'" Mark Zandi - who's also worked with House Democrats - says the president's plan to raise taxes "will have an impact on small businesses..." He continues, "why take a chance when the recovery is so fragile? I think small businesses are very important to the job machine. Without them, the job machine can function, but it can't function well." Why take a chance indeed.
According to the latest news, Democrat Sens. Senators McCaskill (MO), Menendez (NJ), Manchin (WV) and Schumer (NY) have also publicly embraced the idea of extending the expiring tax cuts up to the $1 million level.
So yes, we are in good company.