HCBI and HCCC Join to Fight the "Fiscal Cliff"
The Chamber & HCBI Board of Directors voted to sign the US Chamber of Commerce letter urging Congress and the President to immediately enact legislation that averts America's impending fiscal cliff.
The year- end tax increases would yield the largest tax increases in American history at the same time that spending cuts are being imposed. Economists warn that these spending cuts and tax increases will have a devastating effect on the economy, possibly returning it to a recession. The letter requests that action be taken now. The looming year-end fiscal cliff has increased uncertainty, which has already begun to deter consumer spending and hamper business investment.
Businesses cannot plan for the future and are delaying hiring, ordering and are canceling new investments. As frightened manufacturers delay investment, the rate of economic growth is slowing from a rate of 4.1% at the end of last year to 1.5%.
The letter urges congress and the president to
Extend all of the 2001 and 2003 tax rates (including current marginal rates, dividend and capital gains rates, and estate tax relief) for all taxpayers;
Extend vital expired and expiring business tax provisions;
Provide alternative minimum tax (AMT) relief; and
Find spending cuts to replace a sequestration never intended to go into effect.
Short term action is not a substitute for long term fundamental fiscal reform. In addition to immediate action on the fiscal cliff, the letter also urges that legislators
Firmly commit to tackling comprehensive tax reform in the next Congress; and
Agree to develop a long term plan to address America's excessive spending, particularly entitlement spending.
The Chamber & HCBI believe legislation needs to be enacted to avoid automatic tax increases at a time of economic uncertainty. We support thoughtful and responsible actions addressing longer term essential tax reform that will impact positively on economic growth and job creation