Chamber of Commerce Executive Director sends letter to U.S. Rep Sewell
Selma and Dallas County Executive Director Sheryl Smedley sent a letter this week to U.S. Rep. Terri Sewell, D-AL, to not favor President Joe Biden’s upcoming tax proposal.
The U. S. Chamber of Commerce is urging the Administration and Congress to do the right thing for American businesses and not increase the corporate tax.
The President’s recent budget proposal includes $3.6 trillion in tax hikes, which Smedley wrote will hurt the state’s economy.
“It is going to affect all businesses both large and small,” Smedley said. “This tax hike would hit 15,071 Alabama employers, including 10,000 small businesses with fewer than 500 employees. Many businesses are just now starting to recover.”
Smedley points out reason why the budget proposal doesn’t work.
“The administration claims that the tax increases will only hit big corporations and the rich, but the truth is the proposed tax increases will be paid for by workers and families through lost jobs and lower wages,” Smedley wrote. “This will impact thousands of small businesses. “
Smedley added that all businesses of all sizes will suffer.
“Take the proposal to raise the corporate tax rate from 21% to 28%, which the administration wants you to believe this will only affect “big business.” Smedley wrote.
“The reality is it would hurt businesses of all sizes, their employees, and consumers. For example, if the corporate tax rate were increased to 28%, Alabama companies would face a combined state and federal rate of 32.7% – more than 7 percentage points higher than China, making it harder for Alabama manufacturers to compete with foreign companies. On top of that, under the President’s budget proposal, companies headquartered in Alabama would face higher U.S. taxes on global income.”
Smedley said the tax hike will affect the next generation of state workers.
“The President’s proposal would levy a much higher tax burden on the transfer of assets of family-owned businesses at death,” Smedley said. “ This would threaten the ability of the next generation of Alabamians to keep those family-owned grocery stores, restaurants, autobody shops, construction companies, and farms up and running.
“ The bottom line is that raising taxes now will stop the recovery dead in its tracks. These tax increases aren’t pro-growth or pro-job policy. They aren’t part of the recipe for recovery. And they must be stopped. Hard-working Alabamians and Americans deserve better. We encourage you to oppose raising taxes that will hurt small businesses, workers, and families. “