US Chamber Official Opposes Tax Increase Proposals For 2008

by Glen Shapiro, LawAndTax-News.com, New York

09 January 2008

US Chamber of Commerce Chief Executive, Thomas Donohue, has spoken out this week to voice his concern over the possibility of tax hikes for businesses in the United States

In a speech delivered on Tuesday at the State of American Business Conference, Mr Donohue revealed that the Chamber will oppose any big plans to increase taxes this year, stating that any increase at this point in time will upset the balance of the economy.

However, Donohue did suggest that the introduction of a carbon tax was likely to be unavoidable, adding that the Chamber would show its support to a fully-structured tax which would benefit the country's transportation system and its users.

In his statement, Mr. Donohue reasoned that any tax increases introduced this year would hit American business particularly hard, arguing that:

"We must keep taxes low on hardworking Americans and businesses."

He continued:

"A budget plan recently adopted by the congressional majority assumes the expiration of current tax rates, which would result in a tax increase of more than $1 trillion. An additional tax package suggested by the House Ways and Means Committee Chairman would allow another $1 trillion in tax hikes."

Mr. Donohue went on to state:

"Many small businesspeople put in 70, 80, 90 hours a week and pay their taxes according to individual rates. Under these proposals, they could see their effective rate rise to more than 44%."

"That is an unacceptable impediment to prosperity in America."

"We must fight these outrageous tax hikes. America has succeeded because, in our nation, we reward success and risk taking. We should never, ever punish achievement."

Donohue concluded:

"The bottom line is this - we must stop the practices and policies that undermine economic expansion and start doing more to promote the principles of a successful 21st century economy."

Recommended