SBE Council released the following statement in anticipation of today's signing by President Obama of the deal that will extend tax relief for two years:
SBE Council President & CEO Karen Kerrigan said: “Thankfully a damaging tax hike has been averted, for now. Business owners and entrepreneurs will have access to additional resources and incentives to hire and invest in their firms, which will help fuel the economy. However, a moving tax code with the potential for tax increases in 2012 does not instill full confidence in investors and the private sector."
Kerrigan added, "Once the new Congress convenes, it is imperative that lawmakers and President Obama immediately address this tax mess and lock in a pro-growth tax system so businesses can plan for the long term. This will strengthen U.S. competitiveness and get our economy on a robust growth path, which is also key to preventing a fiscal crisis.”
SBE Council chief economist Raymond J. Keating observed: “This tax deal highlights the difference between what’s politically possible currently, and what would be ideal for the economy. The economy clearly needs permanent, substantive, pro-growth tax relief. For now, though, the best we can get is avoiding a huge tax increase that would have imposed significant damage on entrepreneurship and investment.”
Karen Kerrigan, President & CEO