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Business: Cliff Would Cause “Crisis,” so Wait and Fix Next Year

by Keith Koffler on December 3, 2012, 12:05 pm

Warning of a “crisis” from draconian spending cuts and tax increases that could “bring the economy to its knees,” officials representing the nation’s leading business organizations and companies today called on Congress to keep tax rates and spending at their current levels and address sweeping entitlement and tax reform next year.

In an open letter to the Senate and House, officials of the broad-based Tax Relief Coalition demanded a reprieve from the “cliff” and suggested U.S. businesses could not otherwise easily deal with the results.

TRC members are extremely concerned about the impending “fiscal cliff” that would impose about $600 billion in automatic spending cuts and tax increases on the economy in 2013. TRC strongly urges Congress and the Administration to move quickly to avoid this crisis by extending current fiscal policy including the expiring and expired tax provisions and making critically necessary reforms to our tax and entitlement systems their highest priority in the next Congress.

If Congress and the Administration fail to come to agreement in the next few weeks, the combined effect of indiscriminate spending cuts and tax increases would result in a fiscal policy reduction of more than 4 percent of GDP. The timing of the “fiscal cliff” is of particular concern to TRC members who, like other Americans, are continuing to confront daunting economic challenges as the economy continues to struggle.

The Tax Relief Coalition includes banner business organizations like the U.S. Chamber of Commerce, the National Association of Manufacturers, the National Association of Wholesaler-Distributors, and the National Federation of Independent Business – the nation’s leading small business group – as wells as more than 1,000 other business associations, companies and advocacy groups.

In its own sharply worded letter to Congress, the National Association of Wholesaler-Distributors – which alone represents 40,000 businesses – said President Obama’s recent proposal to Congress had shown that he has “completely abdicated his responsibility” to address the fiscal crisis and that his plan to raise tax rates for the highest earners amounted to “punishing wealth and success” and would harm the economy:

The President’s proposal would impose $4.00 in permanent-and-certain tax increases for less than $1.00 in potential-but-not-certain spending cuts. Speaker Boehner is quoted as being “flabbergasted” by the proposal, which he called “not serious.” Senate Republican Leader McConnell is reported to have laughed at the proposal. We concur with those responses.

The letters suggests that, other than currying favor with some corporate chieftains whose political sympathies may lean Democratic, Obama is not succeeding in attracting business leaders to his point of view.

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Leave a Comment

{ 7 comments… read them below or add one }

Susan December 3, 2012 at 1:08 pm

Silly capitalists. Marxists don’t care about attracting businesses. All they care about is nationalizing your businesses and redistributing your wealth – after they’ve taken their personal cut, of course.

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Cooper December 3, 2012 at 1:13 pm

If he can’t get his way with the House Obama is just as happy to let the tax cuts expire and the cuts in spending go forth on Jan 1. Obama abdicated his responsibilities years ago, which is the main reason why we are at this fork in the road now. The stupid and ignorant of the US have chosen this hack again. This is just the beginning of a very bad ride for the next four years.

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Quintus Arrius December 3, 2012 at 1:21 pm

This is a precient post for the Dossier. As it happened, I spent part of my Sunday going through my reciepts for the last 6 months. On most of the reciepts there is a place to call or log on to a consumer website or phone number to just ask how the business is doing. My goal for the coming year is to inform the businesses, that due their political choices, they will be less of my business in the coming year (read COSTCO). Next to the comment with the amount spent in the previous calender year (thanks to NEAT Reciepts). Elections have consequences.

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Girly1 December 3, 2012 at 2:22 pm

Judging from his imperial attitude, one would think the community organizer won this election by a landslide. Boehner needs to remind himself that Obama does not have a mandate – treat him accordingly. Sending Geithner out there to do the Sunday shows was as bad, if not worse, than sending Susan Rice out to sell the KoolAid. It’s really getting comical – now we have a $50B Stimulus thrown in for good measure (pocket change for cronies) and a ‘no-limit’ debt ceiling subject to Obama’s whims. It’s time for Republican leaders to take Obama to the woodshed and give him a lesson on how govt. works! He’s incorrigible!

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Star December 3, 2012 at 2:37 pm

Sure, do what I say now and later…yeah…yeah, no problem, we will “look” at what you want or think…we will, honest.

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AFVET December 3, 2012 at 3:16 pm

There should be a flat tax, maybe 15% across the board.
Folks that aren’t paying any federal tax but getting welfare and food stamps should have to claim that as income, taxed at the 15% rate.
It’s FAIR RIGHT ?

Sean Hannity just announced that there will be a Christmas Ball held in the White House.
Lovely.
Right before they jet off to Hawaii on a 4 million $ vacation.

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Scottso December 3, 2012 at 4:13 pm

What do the folks in the Pro Golf shop say?

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