US business groups team up to oppose tax rise proposals
US business groups have teamed up to form a coalition opposing tax increase proposals by the Biden administration.
The US government is proposing a global minimum corporation tax rate, as well as increasing the tax in the US to pay for infrastructure projects.
Twenty eight industry groups have now created an alliance called “America’s Job Creators for a Strong Recovery”.
One organiser for the new group said the tax proposals “could not come at a worse time”.
The alliance has been formed as President Biden is seeking to pass a $2.3tn (£1.7tn) infrastructure package, which would direct billions to initiatives such as charging stations for electric vehicles and eliminating lead water pipes.
The White House has promoted its plans as the most ambitious public spending in decades, saying the investments are necessary to keep the US economy growing and competitive with other countries, especially China.
But Eric Hoplin, president and chief executive of the National Association of Wholesaler-Distributors, which is leading the coalition, warned: “The record tax hikes that Democrats are seeking to ram through could not come at a worse time for America’s job creators who are just beginning to recover from a crippling pandemic.
“Employers support smart infrastructure to ensure America’s 21st century competitiveness, but it shouldn’t be used as a Trojan horse to enact record high taxes on America’s individually and family-owned businesses.”
Other business groups signed up to the coalition include the American Hotel and Lodging Association, American Rental Association, Auto Care Association, National Grocers Association and the Wine and Spirits Wholesalers of America.
Chris Smith, executive director of Main Street Employers Coalition, added: “The pandemic has taxed individually and family owned businesses enough – taxing them again while they are still struggling to recover just goes too far.”
A spokesman for the group acknowledged that the infrastructure bill does have strong support, but said that “it quickly becomes unpopular when you talk about taxes on job creators”.
The coalition of lobby groups also expects to add more members in the coming weeks and will conduct research on messaging around the President’s proposals. – bbc.com