By Mariane Angela
Over 500 trade associations issued a collective warning Thursday urging the upcoming Congress and administration to steer clear of imposing what they describe as the largest tax increase in American history.
The potential tax increase could occur if the 2017 Tax Cuts and Jobs Act (TCJA) from the Trump administration is allowed to expire at the end of 2025, according to the letter from the groups. The coalition stressed that allowing these provisions to lapse would slash economic growth, inflate family expenses, hurt small businesses, reduce workers’ take-home pay and lead to widespread job losses — outcomes they deem “unacceptable and completely avoidable.”
“Absent congressional action, at the end of 2025 American families and employers will be hit with the largest tax increase in American history,” the letter reads.
“We are calling on the next Congress and Administration to commit to pursuing a pro-growth agenda and acting to prevent any tax increases on American families or businesses,” the letter continues. “By maintaining a pro-growth tax code, we can continue to build a robust economy that benefits all Americans and ensures that our nation remains a leader in global competitiveness and economic opportunity.”
Commit to growth and prevent tax increases.
That’s the message from more than 500 chambers and associations from across the country as they call on the next Congress and administration to prevent tax increases that would hit American families and businesses and pursue instead a… pic.twitter.com/sPr3HpBDXD
— U.S. Chamber (@USChamber) September 12, 2024
President Donald Trump signed the TCJA into law on January 1, 2018, and imposed tax reductions such as a uniform corporate tax rate of 21%, reduced income taxes, increased the standard deduction and more, according to Investopedia.
“While the impact of a massive tax increase on individual Americans is clear, it is critical for policymakers to understand that the expiration of many pro-growth business tax reforms from the 2017 Tax Cuts and Jobs Act (TCJA) also will dramatically increase costs for families and customers, harm main street businesses, reduce take-home pay for workers, and result in the loss of innovation and American jobs,” Neil Bradley, executive vice president and chief policy officer at the U.S. Chamber of Commerce, said in a statement.
Among the signatories were prominent organizations such as the Airlines for America, Associated Builders and Contractors, Federation of American Hospitals, The Food Industry Association, Mortgage Bankers Association, National Association of Wholesaler-Distributors, Security Industry Association and U.S. Chamber of Commerce, along with numerous other national and local trade groups, according to the letter.
As the November election approaches, former Trump and Vice President Kamala Harris have outlined their tax proposals. Harris’s tax plan is advocating for repealing parts of the tax cuts implemented during the Trump administration, such as an increase in the corporate tax rate from 21% to 28%, according to the Tax Foundation. (RELATED: ‘Massive Waste’: Biden-Harris Admin Slated To Launch New Tax On American Businesses)
Meanwhile, Trump is advocating for the extension of TCJA and aiming to further decrease the corporate tax rate to 15% for businesses, according to the Tax Foundation.
The U.S. Chamber of Commerce did not immediately respond to the Daily Caller News Foundation’s request for comment.
