Letter to Senator Tester
Dear Senator Tester
At the forefront of our recovery from the economic fallout caused by the COVID-19 pandemic is the Biden Administration’s $2 trillion-plus American jobs Plan. It’s an ambitious proposal meant to create jobs, strengthen infrastructure, and position the U.S. to compete globally – ultimately, putting Americans and our communities back on strong financial footing.
However, there are pieces of the President’s plan that, while well-intentioned, will ultimately prove detrimental to the financial well-being of small businesses and local communities across Montana and the rest of the nation. Specifically, increasing the corporate tax and the Global Intangible Low-Taxed Income (GILTI) rates. Under the tax plan, the Biden Administration has proposed increasing the corporate tax rate from 21% to a staggering 28% and the GILTI rates from 10.5% to an untenable 21%.
Of course, increasing taxes on America’s largest, multi-national companies is a tried -and-true talking point, but as organizations representing Montana’s bankers, businesses, and contractors, we know that in reality, corporations wouldn’t be the ones paying for these taxes.
Small businesses and their employees who are at the heartbeat of local communities would feel the largest impacts of these tax hikes whether it be via a direct tax or passthrough. In fact, history shows that workers bear between 75% and 100% of a corporate tax hike since it restricts businesses from increasing job growth and wages.
As a fierce advocate for Montana businesses and our economic recovery, it is imperative that you work with your colleagues in Washington to find less harmful solutions than tax hikes that have been proven time and time again to hurt the people they are meant to help. Saddling our businesses with extra tax burdens while attempting an economic recovery does not help get Montana’s workers, families and communities get back to their feet – it only knocks them back down.
Montana needs you to fight for smart policies in Congress – ones that both pull us out of the pandemic and put us on a path to recovery. We hope you will not compromise economic stability and advancement by raising corporate and GILTI taxes.
Cary Hegreberg, President and CEO of the Montana Bankers Association
Todd O’Hair, President and CEO of the Montana Chamber of Commerce
David Smith, Executive Director of the Montana Contractors Association