Chamber opposes extender bill

Despite supporting the tax measures resuscitated in legislation extending several measures, the U.S. Chamber of Commerce opposes the extender bill because of the tax increases it would inflict on businesses. 

"Ultimately, we have no choice but to oppose this legislation as drafted because it is a job killer," said Bruce Josten, the Chamber's chief government affairs person, in prepared remarks. "While the Chamber believes the economy needs an extension of expired provisions, we believe that this legislation will do more harm than good." 

Among the tax increases in the bill, dubbed the American Jobs and Closing Tax Loopholes Act of 2010, are those on carried interest and so-called S corporations. Both, the Chamber argues, will hinder job creation. 

"These tax increases will hinder job creation, decrease the competitiveness of American businesses and deter economic growth," Josten said. 

House Ways and Means Republicans predict the tax on carried interest will be near 40 percent after the Medicare/Hospital Insurance (HI) tax from the healthcare law is fully phased in. Absent the Medicare/HI tax, the provision is expected to raise $18.7 billion. 

Forcing S corporations to pay employment taxes is expected to raise $11.2 billion. Aside from the Chamber, groups like the Associated Builders and Contractors, Independent Community Bankers of America, the National Association for the Self-Employed, the National Federation of Independent Business, the National Restaurant Association, the S Corporation Association, the Small Business Legislative Council and the American Institute of Architects oppose the measure.

The House is expected to vote on the bill this week, with the Senate following close behind. Democratic leaders still hope to have the bill on President Barack Obama's desk before leaving for the Memorial Day recess.