Austin —The Texas Association of Business (TAB), alongside local chambers of commerce, sent a letter to the Texas congressional delegation in opposition to the federal $3.5 trillion reconciliation bill. The spending package would cause harm to businesses of all sizes, cost jobs, and weaken U.S. competitiveness.
Specifically, the $3.5 trillion bill would:
· Give the U.S. one of the highest corporate tax rates in the industrialized world, higher than China. This would hurt U.S. global competitiveness, reduce wages, deter companies from headquartering in the U.S. and increase costs for taxpayers.
· Undo reforms made by the Tax Cuts and Jobs Act of 2017. A recent study released by the National Association of Manufacturers revealed this could cost the U.S. one million jobs and $117 billion in lost GDP over the first two years.
· Slash up to 107,000 Texas jobs. A report outlined the estimated economic impact of drastically increasing the Global Intangible Low-Taxed Income tax and found it would cost up to 107,000 jobs when combining impacted U.S. multinational corporations and related economic activity.
· Raise taxes on the very investments that small businesses rely on to create high-quality jobs by including a small business investment tax targeting “carried interest.”
· Require financial institutions to automatically report customer account inflows and outflows of $600 to the Internal Revenue Service.
The letter TAB sent to Congress on October 11, 2021 can be found here.
TAB is the voice for Texas businesses, representing more than 1,500 members and 200 local chambers. United to protect the business-friendly climate, TAB works on the frontlines, in a bi-partisan manner, to deliver real solutions that promote economic development in Texas. Follow TAB on Facebook, Twitter, and LinkedIn.