To the Members of the United States Congress:
Chamber630, along with the other undersigned chambers of commerce and business organizations from across the United States urge you to oppose the Inflation Reduction Act of 2022. This legislation includes taxes that would discourage investment and undermine economic growth and price controls that would limit American innovation. Despite the name of the bill, independent analysis confirms that it would have little to no impact on inflation and may in fact increase inflationary pressure in the near-term.
We believe that the following provisions make this legislation unworkable:
The proposed Corporate Book Minimum Tax would impose additional taxes on many U.S. companies when they invest money to build new factories and plants, improve electric transmission lines, or expand 5G wireless coverage. Congress’s non-partisan Joint Committee on Taxation estimates that nearly half of the $313 billion expected to be raised by this tax will be borne by manufacturing companies. This proposal risks reducing the Capital Stock of the country by 0.3%, which would lead to a decline in GDP and a loss of American jobs.
- Changes to tax law related to carried interest would significantly increase taxes on private equity and venture capital investments flowing into businesses—including many small businesses—throughout the country.
- New price controls on pharmaceuticals would significantly reduce private sector investment in new research. Not only would this provision reduce jobs and hurt the economy, but the non-partisan Congressional Budget Office predicts that it will stifle the introduction of 15 new drugs over the next 30 years.
This is the absolute wrong time to increase taxes on American job creators or implement price controls on American innovators. We urge Congress to reject this misguided legislative package.
President & CEO
cc: Board of Directors