"[A] survey of small business owners found that businesses most likely to pay the top rates employ over 25 percent of the total workforce," it states. "With unemployment near 10 percent, subjecting employers accounting for such a large portion of the workforce with a substantial tax hike is risky and harmful to the recovery."
The letter goes on to say that estimates "from Treasury and the Congressional Budget Office make clear that between one-fourth and one-third of all businesses tax income is taxed at the top rates."
It adds that lawmakers should stop looking at the type of business affected by the tax increase, but "rather how much economic activity is subject to the tax hike and how many jobs are put at risk."
Senate Majority Leader Harry Reid (D-Nev.) is expected to act on the Bush tax cuts shortly after returning from the August recess.