NTU urges all Senators to vote “NO” on the Baucus substitute amendment to H.R. 4213, the so-called “American Workers, State, and Business Relief” 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. Moreover, the extensions of unemployment benefits, COBRA, and FMAP aid do not have to be offset due to their emergency designation, so this legislation would increase the deficit by $104 billion over 2010-2020.
In order to best protect taxpayers, we urge you to support the following amendments:
· Vote YES on the Thune amendment to implement meaningful tax relief for small businesses, such as a permanent increase in Section 179 expensing and elimination of the capital gains tax for investment. While some of these provisions could provide a net increase in future revenues due to economic growth, the proposal is fully offset by unpaid stimulus funding.
· Vote YES on the Sessions/McCaskill amendment to establish a responsible cap on spending growth of roughly 2 percent per year from 2011-2014 that would require a 67-vote point of order to waive.
A “NO” vote on the substitute to H.R. 4213, and “YES” votes on the Thune and Sessions/McCaskill amendments, will be significantly weighted as pro-taxpayer votes in our annual Rating of Congress.
If you have any questions, please contact NTU Federal Government Affairs Manager Jordan Forbes at (703) 683-5700.