NTU urges all Representatives to vote “NO” on H.R. 4213, the “Tax Extenders Act of 2009,” introduced by Representative Charlie Rangel (D-NY).
This legislation extends dozens of expiring provisions of the tax code that reduce burdens on American families and businesses, such as the state and local sales and property tax deductions and the research and development tax credit. Unfortunately, H.R. 4213 immediately offsets that temporary relief by entrenching several new tax hikes into permanent law.
The most prominent tax hike in this bill changes the treatment of “carried interest” profits earned by investment managers, which would increase the top tax rate by 20 percent, from 15 percent to 35 percent. This is a blatant attempt to raise more revenue by changing the long-standing treatment of “carried interest” profits as capital gains (since they are subject to the same risk factors as any other investment) to the more lucrative ordinary income tax rates.
Trading temporary tax relief for permanent tax hikes is a bad deal for taxpayers. Congress should reject this bill. Instead, Congress should pass legislation that would overhaul our tax system and provide permanent tax relief without resorting to tax hikes elsewhere in the budget.
A “NO” vote on H.R. 4213, the “Tax Extenders Act of 2009,” will be significantly weighted as a pro-taxpayer vote in our annual Rating of Congress.
If you have any questions, please contact NTU Director of Government Affairs Andrew Moylan at (703) 683-5700.
