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Calls on Congress to extend the 2001 and 2003 tax rates and business tax provisions.
This morning, the Big “I” sent a letter to congressional leaders in support of efforts “to pass an extension of all current marginal tax rates, as well as dividend and capital gains tax rates.” The letter was sent as congressional leaders have been in talks with the White House on how to address the looming tax issues before the end of the year.
As previously reported in IA magazine and IN&V, if Congress fails to act before midnight on New Year’s Eve, a wave of tax increases will be set off, including hikes in marginal tax rates, capital gains and dividends and a huge hike in the estate tax. Prospects for passing at least a one- or two-year extension in many of these areas are good, especially for the marginal income taxes. The prospects for the estate tax fix are not as positive, as pressure has been on Congress to pass it for more than a year with no results.
The Big “I” letter points out that “Our membership consists primarily of small businesses, the vast majority of which are organized as Subchapter S Corporations, Partnerships or Sole Proprietorships. This means they pay taxes at individual rates and thus are subject to any increase in marginal tax rates. Passage of an extension of current tax rates in all areas would allow the small businesses in our membership the certainty they need to invest capital back into their businesses, sparking expansion of business leading to more jobs and contributing to an economic recovery.”
To read the Big “I” letter, click here.
This week, the Big “I” also supported a U.S. Chamber of Commerce-led effort to get hundreds of associations, companies and other organizations to sign onto a letter urging “Congress to end the tax uncertainty plaguing the business community by extending the expiring 2001 and 2003 marginal tax rates, as well as dividend and capital gains tax rates, and the business tax provisions that expired at the end of 2009.”
To read the full text of the Chamber letter and the list of supporting organizations, click here.