New Report Makes Business Case for Letting High-End Tax Cuts Expire; Telepress conference with Sen. Merkley Nov. 17; Petition

Contact: Blair Fitzgibbon, 202-503-6141, Fitzgibbon Media
Bob Keener, 617-610-6766, bobkeener@businessforsharedprosperity.org

Washington, DC, November 16, 2010 – A report released today finds it makes good business sense to let high-end Bush tax cuts expire on Dec. 31. The Business Case for Letting High-End Tax Cuts Expire, by Business for Shared Prosperity, says families should keep tax cuts on their income below $250,000, but well-off taxpayers should not get extra tax cuts that won’t create jobs and will cost $700 billion over the next decade. Instead, Congress should build on constructive action like the Small Business Jobs Act and infrastructure investment needed to create jobs and be competitive in the global economy.

U.S. Women’s Chamber of Commerce CEO Margot Dorfman said, “The high-end Bush-era tax cuts are contributing to our financial ruin rather than our economic success. They should expire as scheduled on December 31 and put us on a better path for the New Year.”

Rick Poore, Owner of Design Wear Inc. in Lincoln, Nebraska said, “The idea that ending the Bush cuts for the top brackets will hamper small businesses’ ability to reinvest is a red herring. I’m an average small business owner in Nebraska. The sales dollars I reinvest by hiring more employees or buying equipment don’t pass through onto my tax return. As a fellow businessman once told me, ‘Give me more customers and I’ll be forced to buy equipment and hire people to meet demand. Give me a tax break without more customers and I’ll just go to Aruba.’”

Press Teleconference Nov. 17: tentatively scheduled for 1 pm ET with Sen. Jeff Merkley, U.S. Women’s Chamber of Commerce CEO Margot Dorfman, SC Small Business Chamber of Commerce CEO Frank Knapp and a member of the Oregon Small Business Council.

South Carolina Small Business Chamber of Commerce CEO Frank Knapp said, "Extending the high-end Bush tax cuts serves Wall Street and K Street lobbyists, not Main Street shop owners. Politicians should not use us to justify a very bad business decision."

National business leaders and small business owners across the country are signing a petition to be delivered this week urging Congress and President Obama to let the high-end tax cuts expire and use the tax revenue for job creation and infrastructure investment. Lead signers include Margot Dorfman, Frank Knapp, American Sustainable Business Council Executive Director David Levine, American Made Alliance President Wendy Rosen and Atlanta Women in Business founder Lya Sorano, among many others.

The Business Case for Letting High-End Tax Cuts Expire finds:

• Small business hiring is driven by customer demand, not tax rates.
• Job growth was much better before the tax cuts. The Bush administration created just 1.1 million jobs net, while the Clinton administration created 22.7 million.
• High-income households will actually get thousands of dollars more than middle-income households from the “middle-class tax cuts.”
• Less than 3% of tax filers with any business income make over $200,000 (individuals) or $250,000 (couples) a year, and that’s counting hedge fund investors, big business lobbyists, and other non-small business owners.
• According to the latest IRS data, the 400 richest taxpayers increased their average income by 399 percent, adjusted for inflation, between 1992 and 2007, and lowered their effective income tax rate by 37 percent - from 26.4 percent to 16.6 percent.
• More budget-busting tax cuts for the top won’t help small business, won’t create jobs and won’t rebuild our failing infrastructure. They will hurt our economy and make us less competitive globally.

The report and petition are available at www.businessforsharedprosperity.org. Business for Shared Prosperity is an independent network of forward-thinking business owners, executives and investors.

To interview small business owners around the country contact Bob Keener, 617-610-6766, bobkeener@businessforsharedprosperity.org

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