Unless Congress acts to extend the federal tax cuts of 2001 and 2003, American taxpayers will face increases to their taxes on January 1, 2011, the day after they are set to expire. The Greater Philadelphia Chamber of Commerce supports efforts to extend the 2001 and 2003 tax cuts at their current levels. We urge our elected representatives in Washington, D.C. to take up this issue before the final adjournment of the 111th Congress.
A competitive tax structure for business-owners and individuals remains one of the highest priorities of the GPCC. We believe that lower tax rates help spur the economy in the long run by encouraging saving and investment, boosting consumer spending, promoting growth, and building the tax base.
We applaud the Obama Administration for addressing this issue by proposing to extend the tax cuts for all individuals making less than $200,000 annually and all families earning less than $250,000 annually. However, we believe that such a proposal falls short of the intended goal of economic development and job creation. Since many employers file their business revenues under the individual tax system, resources otherwise used to create jobs or grow the business will instead be paid in taxes to the federal government. Under such a scenario, our recovering economy – built on the back of small business – will undoubtedly suffer.
Congress has a tremendous opportunity to send all small business owners and job providers an unequivocal message that the current tax rates for all taxpayers will remain in place. Such a message would provide entrepreneurs and businesspersons increased certainty in an anemic economic recovery. Business owners can begin investing in American jobs without worrying about the effects of tax increases.