Since Democrats introduced their latest version of H.R. 4213, “The American Jobs and Closing Tax Loopholes Act,” business leaders and organizations that represent millions of American businesses and their employees have voiced their opposition to the job-killing, deficit extending bill. These employers say that the legislation is anti-job growth, will place American businesses at a worldwide competitive disadvantage, subject them to higher taxes and will harm the nation’s path to economic recovery.
Given the disconnect between House Democrats’ rhetoric on jobs and their votes for tax increases, it is no wonder employers are confused, new investments aren’t being made and unemployment continues to hover at close to 10 percent. Below are just some of the concerns expressed by employers.
- National Federation of Independent Business: “The bottom line is that H.R. 4213 will result in higher taxes and increased costs for small businesses owners. And if you want small businesses to start hiring again, the last thing Washington should be doing is raising their taxes and the cost of doing business. For these reasons, NFIB opposes H.R. 4213.”
- U.S. Chamber of Commerce: “However, Congress’ decision with this legislation, to saddle small business, American worldwide companies, and investment partnerships with draconian tax increases that will hinder job creation, decrease the competitiveness of American businesses, and deter economic growth, leaves the Chamber no choice but to oppose this legislation as currently drafted.”
- Business Roundtable: “These tax increases would take us two steps backwards in terms of the job-creating legislation; we strongly need to move our economy forward, not backwards, to stay competitive with the rest of the world.”
- National Association of Home Builders: “NAHB estimates that the economic impact of taxing carried interest as 100 percent ordinary income would be a loss of 33,000 jobs due to reduced multifamily rental housing construction and $1.2 billion in reduced annual property tax revenues to state and local governments.”
- National Association of Manufacturers: “Unfortunately, the onerous tax increases…could outweigh the benefits of the pro-growth changes by imposing significant new costs on American businesses and threatening job creation, U.S. competitiveness and overall economic growth.”
- Associated General Contractors: “Unfortunately, the bill reduces the effectiveness of these provisions by reducing capital available for private construction and limiting private job creation by increasing taxes on many small businesses in the construction industry.”
- National Foreign Trade Council: “These new revenue proposals will make American businesses less able to compete in foreign markets, will subject them to double taxation, and as a result may have significant negative consequences on worldwide American businesses and their U.S. employees.”
- Promote America’s Competitive Edge: “The proposed changes in the international tax rules will make a bad situation worse, making it even more difficult for American worldwide companies to compete.”
- Technology CEO Council: “At a time when innovative companies are looking for more certainty and stability, the extenders bill as currently drafted fails to provide either…last-minute proposals to raise revenue could outweigh the bill’s positive aspects, possibly costing – not creating – jobs.”
- IBM: “The pending legislation would impose significant new tax increases that will completely overwhelm any positive economic effect of the R&D tax credit, harming the U.S. economy just as recovery has begun.”
- Black Entertainment Television Founder Robert Johnson: “In my opinion, this legislation would cause a rapid decline in minority private equity firms and possibly eliminate minority participation in this important financial sector of the American economy…If minority funds are reduced or eliminated it will also impact investments in urban cities and job creation and economic development in markets where it is most needed ”
- Finance Executives International: “With more Americans out of work than any other time in the last 50 years, businesses in the U.S. have an obligation to get our citizens back to work. Other countries seem to understand this call to action, and are working tirelessly to lower tax rates and bring in businesses from around the globe. By passing H.R. 4213, the United States would be harming the competitiveness of American worldwide companies.”
- Emergency Committee for American Trade: “H.R. 4213 will undermine U.S. commercial engagement overseas and put U.S. enterprises and their workers at an even greater competitive disadvantage… H.R. 4213 is a major step in the wrong direction.”
- Silicon Valley Leadership Group: “We are concerned that the recent revenue off-sets are being used as ‘pay-fors’ at the expense of U.S. jobs.”
- Real Estate Roundtable: “Capital formation is what leads to job and tax base
creation — this proposal would discourage it. Now is not the time to raise taxes. The tax hike will further delay economic recovery and make financing and refinancing more difficult.”
- S Corporation Association of America: “It represents an $11 billion tax hike on employers in the middle of a very difficult economy, and it should be rejected.”
- Organization for International Investment: “[S]everal of the international proposals in the Amendment may diminish the ability of foreign multinationals to continue making significant contributions to the U.S. economy and U.S. employment.”
- Investment Company Institute: “Congressional action at this time would be both redundant and counterproductive.” *
*Pete Cohn & Billy House, “Reid Hints At Weekend, As ‘Extenders’ Opposition Mounts.” Congress Daily. May 25th, 2010.