The White House corporate tax reform proposal unveiled July 30 by President Barack Obama in Chattanooga, Tenn., is no ‘grand bargain,’ said ABC. Obama’s plan consists of the same corporate tax cuts proposed last year paired with new stimulus spending for infrastructure and manufacturing paid for with one-time tax revenue.
“Corporate-only rate reduction does not amount to business tax reform,” said ABC Vice President of Federal Affairs Geoff Burr stated. “The president’s plan not only widens the existing gap between Main Street and the Fortune 500, but would actually mean billions of dollars in increased taxes for construction contractors.”
In fact, 80 percent of the construction industry is comprised of pass-through entities and the majority of the private-sector workforce also is employed under these tax structures. The president’s plan did not contain any meaningful reform for those businesses or their employees.
“A tax cut for large corporations financed on the backs of small business can hardly be called grand, and is certainly no bargain for the sixty million Americans working for pass-through entities,” said ABC Vice President of Federal Affairs Geoff Burr.
Instead, ABC expressed support for the broader rewrite favored by Senator Max Baucus (D-Mon.) and Representative Dave Camp (R-Mich.), leaders of the respective congressional tax-writing committees. The chairmen have embarked on a joint “road show,” engaging business owners and employees, and soliciting feedback from the public on tax reform.
“Despite the president’s insistence on dividing the business community, ABC is encouraged by the bipartisan, comprehensive approach by Chairmen Baucus and Camp, and we look forward to working with them to make the tax code fairer, simpler, and more equitable for businesses irrespective of size or industry,” Burr said.