As Your Committee Begins Marking Up The 3.5 Trillion .

September 9th, 2021Dear Chairman Neal, Ranking Member Brady, andMembers of the Ways and Means Committee:As your committee begins marking up the 3.5 trillionreckless tax-and spend reconciliation proposal, we writein opposition to any effort to raise taxes on Americanfamilies and businesses.It is expected that the reconciliation legislation will includecountless tax increases totaling trillions of dollars. Some ofthe tax increases that have been publicly floated include: Raising the corporate tax rate to 25 percent or 28percent, a rate higher than Communist ChinaDoubling the capital gains tax to 43.4 percentRaising the top rate to 39.6 percentCreating a second death tax by eliminating step-upin basis95 percent excise tax on pharmaceuticalmanufacturers if they fail to accept government setprice controlsRepealing the deduction for foreign-derivedintangible incomeRaising taxes on carried interest capital gainsRaising the tax rate on GILTI to a top rate of 26.25percent and requiring it to be calculated on acountry-by-country basisImposing a 15 percent minimum tax on bookincomeRetroactively capping the conservation easementdeductionRepealing numerous oil and gas tax provisionsincluding the deduction for intangible drilling costs(IDCs)A tax on American energy manufacturers based ontheir methane productionA carbon border taxCapping Section 1031 like-kind exchangesSupporters of the 3.5 trillion reconciliation bill, like selfavowed socialist Bernie Sanders claim that the taxPage 1 of 12

increases will be paid by billionaires “who don't pay anickel in federal income taxes (and) large corporationsthat make billions in profit, and in some years do not pay apenny in federal income taxes.”This claim is false. Millions of small businesses will seehigher taxes through the increase in the corporate tax andthe top marginal income tax rate. In addition, the plan torepeal step-up in basis will raise taxes on family-ownedbusinesses across the country.Democrats have also floated retroactive tax increases onthe American people. For instance, the Biden budget callsfor retroactively increasing the capital gains tax. This is aterrible idea – retroactive tax policy changes the rules ontaxpayers after the fact. It is fundamentally unfair anderodes confidence in the tax system.Many of the tax hikes being pushed by the administrationviolate President Biden’s pledge not to raise taxes on anyAmerican earning less than 400,000 per year. A recentanalysis by the left-of-center Tax Policy Center found thatthe tax hikes proposed in President Biden’s budget willraise taxes on 74.1 percent of middle income-quintilehouseholds in 2022. In addition, a report by the JointCommittee on Taxation found that over the long-term,approximately 100 billion of the corporate tax increasewould be borne by taxpayers making less than 100,000.Now is one of the worst times to raise taxes on Americanfamilies and businesses. We are still over five million jobsshort of pre-pandemic levels. In addition, inflation isrunning rampant and increasing prices for families andbusinesses across the country.Rather than pushing tax increases on American familiesand businesses, we urge you to push policies that promoteeconomic growth so that the economy can recover andgrow.Sincerely,Grover NorquistPresident, Americans for Tax ReformPage 2 of 12

Ryan EllisPresident, Center for a Free EconomyDavid McIntoshPresident, The Club for GrowthBrandon ArnoldExecutive Vice President, National Taxpayers UnionBrent Wm. GardnerChief Government Affairs Officer, Americans for ProsperityGarrett BessVice President, Heritage Action for AmericaAdam BrandonPresident, FreedomWorksStephen MooreSenior Economic Contributor, FreedomWorksGovernor Scott Walker, PresidentYoung America’s FoundationTom SchatzPresident, Council for Citizens Against Government WasteAngela LogomasiniSenior Fellow, Competitive Enterprise InstituteMarlo LewisSenior Fellow, Energy & Environmental PolicyCompetitive Enterprise InstituteMyron EbellDirector, Center for Energy and EnvironmentCompetitive Enterprise InstituteDavid WilliamsPresident, Taxpayers Protection AllianceLisa B NelsonCEO, ALEC ActionPage 3 of 12

Daniel SchneiderExecutive Director, American Conservative UnionPhil KerpenPresident, American CommitmentSaulius “Saul” AnuzisPresident, 60 Plus AssociationJim MartinFounder/Chairman, 60 Plus AssociationMarty ConnorsCo-Chairman, Alabama Center-Right Coalition MeetingAlan SearsFounder, Alliance Defending FreedomBob CarlstromPresident, AMAC ActionKelly KullbergAmerican Association of EvangelicalsDick PattenPresident, American Business Defense CouncilThomas PylePresident, American Energy AllianceKathleen PattenPresident and CEO, American Target Advertising, Inc.Gary L. BauerPresident, American ValuesDee StewartPresident, Americans for a Balanced BudgetThe Honorable Jake HoffmanArizona House of RepresentativesThe Honorable Brenda BartonArizona House of RepresentativesPage 4 of 12

The Honorable Leo BiasiucciArizona House of RepresentativesThe Honorable Walt BlackmanArizona House of RepresentativesThe Honorable Judy BurgesArizona House of RepresentativesThe Honorable Joseph ChaplikArizona House of RepresentativesThe Honorable John FillmoreArizona House of RepresentativesThe Honorable Gail GriffinArizona House of RepresentativesThe Honorable Justin WilmethArizona House of RepresentativesThe Honorable John KavanaughArizona House of RepresentativesThe Honorable Becky NuttArizona House of RepresentativesThe Honorable Jacqueline ParkerArizona House of RepresentativesThe Honorable Kevin PayneArizona House of RepresentativesThe Honorable Beverly PingerelliArizona House of RepresentativesE.C. SykesGeneral Partner, Aslan VenturesRobert AltPresident and CEO, The Buckeye InstitutePage 5 of 12

Lourdes CosioCampaign for the American FutureRalph BenkoChairman, The Capitalist LeagueSusan A. CarlesonPresident/CEO, Carleson Center for Welfare ReformAndrew F. QuinlanPresident, Center for Freedom and ProsperityJeffrey MazzellaPresident, Center for Individual FreedomGinevra Joyce-MyersExecutive Director, Center for Innovation and FreeEnterpriseShannon O. Royce, J.D.President, Christian Employers AllianceDavid KullbergExecutive Director, Christians for a Sustainable EconomyDavid N. BossiePresident, Citizens UnitedKay R. DalyPresident, Coalition for a Fair JudiciaryMr. John J. Park JrConservative ActivistKaren HartmanConservative Activist/ParalegalMorton BlackwellChairman, Conservative Leadership PACGeorge K. Rasley JrManaging Editor, ConservativeHQ.comPage 6 of 12

Alfred S. RegneryChairman, Conservative Action ProjectPresident, Republic Book PublishersRon PearsonExecutive Director, Conservative Victory FundJames EdwardsExecutive Director, Conservatives for Property RightsMatthew KandrachPresident, Consumer Action for a Strong EconomyCharles J. CooperCooper & Kirk, PLLCGuillermo J. AragonSenior Partner, Corbere PartnersKatie McAuliffeExecutive Director, Digital LibertySteven J. BuriPresident, Discovery InstituteAnne Schlafly CoriChairman, Eagle ForumDonna Rice HughesCEO/President, Enough Is EnoughPalmer SchoeningChairman, Family Business CoalitionAnnette Thompson MeeksCEO, Freedom Foundation of MinnesotaGeorge LandrithPresident, Frontiers of FreedomVictor RichesPresident & CEO, Goldwater InstitutePage 7 of 12

Andresen BlomPresident, Hawaiian ValuesCarrie LukasPresident, Independent Women's ForumHeather R. HigginsCEO, Independent Women's VoiceAndrew LangerPresident, Institute for LibertyTom GiovanettiPresident, Institute for Policy InnovationChristopher IngstadPresident, Iowans for Tax ReliefPeggy DauRepresentative, Iran Alive MinistriesJohn DoddPresident Emeritus, Jesse Helms CenterChairman, North Carolina Center-Right Coalition MeetingThe Honorable Morton C. BlackwellPresident, Leadership InstituteSeton MotleyPresident, Less GovernmentMrs. Kielle C. HortonPresident, The Lindsey FoundationRandy M LongFounder, Long Business Advisors, LLCBrett HealyPresident, MacIver InstituteGary MarxPresident, Madison StrategiesPage 8 of 12

Matthew GagnonChief Executive Officer, Maine Policy InstituteCharles SauerPresident, Market InstituteChristina Murphy Lusk, Esq.President, The Martin FoundationRod D. MartinFounder and CEO, The Martin Organization, Inc.L. Brent Bozell, IIIFounder and President, Media Research CenterTim JonesChair, Missouri Center-Right CoalitionFmr. Speaker, Missouri HouseJoseph A. MorrisPartner, Morris & De La RosaAssistant U.S. Attorney General (President Reagan)Justin DanhofExecutive Vice President, National Center for Public PolicyResearchShawn MitchellFormer National Chaplain, National Federation ofRepublican AssembliesChuck MuthChairman, Nevada Center-Right Coalition MeetingMelvin AdamsPresident, Noah Webster Educational FoundationKevin FreemanFounder, NSIC InstituteGerard KassarState Chairman, NYS Conservative PartyPage 9 of 12

Brandon DutcherSenior Vice President, Oklahoma Council of Public AffairsDoug KelloggExecutive Director, Ohioans for Tax ReformTom HebertExecutive Director, Open Competition CenterJeff KropfPresident, Oregon Taxpayer Coalition and the OregonCapitol Watch FoundationGrant MaloyChairman, Orlando Center-Right Coalition MeetingEllen WeaverPresident & CEO, Palmetto Promise InstituteStephen StepanekPresident, Pine Tree Public Policy InstituteCo-Chairman, New Hampshire Center-Right CoalitionMeetingPenna DexterCo-host, Point of View Radio ShowLorenzo MontanariExecutive Director, Property Rights AllianceNancy SchulzeFounder and President, RCW SpeakersCraig ShirleyReagan Biographer and Presidential HistorianDr. Rick ScarboroughPresident, Recover America ActionPaul GessingPresident, Rio Grande FoundationMike StenhouseCEO, Rhode Island Center for Freedom and ProsperityPage 10 of 12

Bryan BashurExecutive Director, Shareholder Advocacy ForumKerri ToloczkoChairman, Southwest Florida Center-Right CoalitionMeetingDavid MillerCo-Chairman, Southwest Ohio Center-Right CoalitionMeetingSal RussoCo-Founder and Chief Strategist, Tea Party ExpressJudson PhillipsFounder, Tea Party NationWilliam W. Pascoe, IIIOur Man in WashingtonTea Party Patriots ActionVance GinnChief Economist, Texas Public Policy FoundationKent KaiserExecutive Director, Trade Alliance to Promote ProsperityC. Preston Noell IIIPresident, Tradition, Family, Property, Inc.Terrence ScanlonRetired Chairman, U.S. Consumer Product Safety Commn.Retired Chairman and President, Capital Research Center,(22 years)The Honorable Bob McEwenU.S. House of RepresentativesFormer Member, OhioThe Honorable Stephen StockmanU.S. House of RepresentativesFormer Member, TexasPage 11 of 12

Rusty CannonPresident, Utah Taxpayer AssociationFloyd BrownFounder, The Western JournalPage 12 of 12

Page 1 of 12 September 9th, 2021 Dear Chairman Neal, Ranking Member Brady, and Members of the Ways and Means Committ