ABC joined 39 other organizations Nov. 27 in sending a letter
(PDF) to leaders in the U.S. Senate and the U.S. House of Representatives urging them to avert the looming fiscal cliff of expiring tax provisions and automatic spending cuts that will effectively raise taxes on the majority of small businesses next year.
In the letter, the groups cited the Congressional Budget Office estimate that if top tax rates are allowed to expire there will be 200,000 fewer jobs next year. They go on to point out that the ambiguity of future rates and the broader fiscal picture is already harming the economy, with-two thirds of business owners citing this uncertainty as an impediment to growth and hiring.
The letter then urged Congress to avoid raising marginal tax rates on employers as part of any deal, and instead work toward comprehensive tax reform that simplifies the tax code and encourages growth both for pass-through businesses and corporations.
“There is no economic or political justification for reform that lowers marginal tax rates on corporations while raising either marginal or effective tax rates on the 95 percent of businesses structured as pass-through entities that employ more than half of the U.S. workforce,” the letter stated.
In addition to averting the fiscal cliff, raising the debt ceiling and reforming the tax code, the groups also called on Congress to commit to developing a long-term plan to address America’s entitlement programs.