The U.S. Chamber of Commerce, a huge business group, previously supported Obama’s stimulus efforts.
Now, as the government ponders what to do with the expiring Bush tax cuts, this business is lobbying hard for an extension, which is essentially an extension of economic stimulus.
As always, warn of disaster when you want your way:
“We are running a reasonable risk of going back into a recession,” Anderson [of the Chamber of Commerce] said in an interview. “As you wear off the artificial spending of the stimulus, you are seeing weakening in job growth.”
The Chamber, which spent more than $30 million lobbying this year, believes the “overhang” of pending health, financial, environmental and other regulations is stifling business spending and curtailing the economic recovery, Anderson said.
They propose increasing tax revenue in the near-term by reducing the total amount of taxes they should pay in the long-term:
Anderson said the Chamber will detail proposals to raise revenue without increasing individual taxes, such as reinstituting a tax holiday on corporations’ overseas income. A 2004 tax holiday let companies that stockpiled dollars overseas bring the money into the U.S. at a rate of 5.25 per cent instead of the 35 per cent they otherwise would owe.
Obama said during his presidential campaign that he would only keep middle-class tax cuts, letting those for the wealthy expire. The Chamber of Commerce wants all kept, and the cost of extending tax cuts for the ‘most prosperous’ Amerians is said to be $55 billion in lost tax revenue. These calculations always leave out the cost of deterring different kinds of savings and investment, but it’s a complex issue we won’t take a stand on right here.
Thoughts for or against?
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