NAM urges extension of Bush tax cuts for upper brackets

That National Association of Manufacturers (NAM) on Tuesday urged lawmakers to extend the Bush tax cuts for upper-income taxpayers, saying the rate increase will hit small businesses that pay taxes based on individual rates. 

Approximately 70 percent of firms belonging to NAM are taxed at individual rates, said Dorothy Coleman, VP of tax and policy at the organization.

NAM released a poll by RSM McGladrey today showing that 87 percent of manufacturers and distributors are concerned about the impending rate increase. Over 60 percent of respondents are very concerned. Tom Murphy, an executive VP at RSM, said the concern stems from companies that will pay higher taxes next year. 

"If they weren't paying higher taxes why would they be concerned," he said.  

Absent congressional action, the Bush tax cuts are slated to expire next year. Democratic lawmakers are looking to extend the tax cuts that benefit the middle class, but will allow breaks for the wealthy to expire since extending them would require offsets, according to paygo rules. 

House Ways and Means Chairman Sandy Levin (D-Mich.) has repeatedly said that without a budget resolution there is insufficient support in the Senate to offset the cost of extending tax cuts for wealthier taxpayers. 

However, The Hill has learned that Senate Democrats could include reconciliation instructions in its budget resolution. If accurate, the Senate would only need a simple majority, not a super majority of 60 votes, to extend the Bush tax cuts for the wealthy. Offsets would likely still be required to at least counter the cost of extending these measures since reconciliation is supposed to be used for deficit reduction.