NTU urges all Representatives to vote "NO" on amendments to H.R. 4213, the misnamed "American Jobs, Closing Tax Loopholes and Preventing Outsourcing Act."
This legislation extends numerous expiring provisions of the Tax Code that reduce burdens on American families and businesses, such as the state and local sales tax deduction and the research and development tax credit. Unfortunately, H.R. 4213 immediately counteracts that temporary relief by entrenching several new tax hikes into permanent law. One example is the tax on carried interest, which would prohibit investment managers from paying capital gains tax rates on services income received as carried interest. This would stifle the entrepreneurial spirit we need in this dismal economic climate.
H.R. 4213 would provide $35 billion in tax relief and $75 billion in permanent tax hikes, for a net tax increase of $40 billion. The largest spending item is the "doc fix," a provision that seems to satisfy no one even as it adds $46.8 billion in costs to the nation's balance sheet. Moreover, the extensions of unemployment benefits, COBRA, and FMAP aid will not be offset with reductions elsewhere due to their emergency designation. This means H.R. 4213 would boost the deficit by $134 billion over the 2010-2020 period.
Amendments to H.R. 4213 offer little hope of fixing the bill's fundamental flaws and thereby protecting taxpayers. A "NO" vote on H.R. 4213 will be significantly weighted in our annual Rating of Congress.
If you have any questions, please contact
NTU Federal Government Affairs Manager Jordan Forbes at (703) 683-5700