On the Budget and Tax Increases

By February 24, 2009Economy, Taxation

NAM President John Engler met with reporters yesterday to release the “NAM Agenda for Economic Recovery and Job Creation,” and the topic of President Obama’s budget came up, specifically, the expectation that the Administration will propose allowing the 2001 and 2003 tax cuts to expire.

The Hill included Engler’s response in a larger piece today about the budget, “After spending spree, lobbyists start getting ready for leaner times ahead “:

John Engler, the president of the National Association of Manufacturers, said tax hikes of any type to cut the deficit would most likely be opposed by the members of his group.

“Across the NAM membership, that is looked on with great skepticism,” Engler said, adding that higher rates on businesses will discourage spending and investment. “That doesn’t send a helpful signal.”

We expect there to be rhetoric about “eliminating tax cuts for the rich.” In fact, because many small businesses file taxes as individuals, what that really is “raising taxes on small business” — and that’s a definite jobs killer.

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