Greater Reading Chamber Alliance opposes $3.5 trillion federal economic measure

Sep. 24—The Greater Reading Chamber Alliance has come out against a $3.5 trillion economic plan from U.S. Senate Democratic leaders that would increase safety net programs, cut taxes for families and increase taxes for wealthy individuals and corporations.

In a letter dated Thursday sent to Berks County's Congressional delegation, Chamber Alliance president and CEO Jim Gerlach called the plan — which Democrats are hoping to pass through the budget reconciliation process — "egregiously expensive" and said it would hurt businesses.

"The business community continues to recover from COVID-19 and the constant shifting of government guidance," he wrote. "This, if enacted, coupled with a sustained workforce shortage, rising inflation and supply chain disruptions, would add immense burden to still struggling businesses via additional taxes and mandates."

Gerlach, a former Republican congressman who represented Berks, wrote that he believes increased taxes on corporations will have a negative impact on large and small "family-sustaining" businesses. Those increases would be on top of Pennsylvania's already nation-high corporate net income tax rate, he wrote.

Gerlach also calls the plan a "massive expansion of the federal government's reach into the private sector" that will end up hurting the U.S. economy and disrupting relationships between employees and employers through an act that would protect workers rights to organize. Gerlach wrote that the Protecting the Right to Organize Act would force workers to pay union dues, take away right-to-work provisions in many states and destroy independent contractor jobs.

Gerlach wrote that now is not the time for a large increase in federal spending.

"Throwing more money at the economy is not a responsible or sustainable solution," he continued. "The proposed reconciliation package seeks to spend our way to prosperity, but at the cost of the very businesses needed to fund it."

What is reconciliation?

Despite the fact that the bill is often referred to as a "reconciliation bill," reconciliation is a process and not a type of legislation.

A bill needs to be passed by the House and Senate before receiving a president's signature to become a law. In the House that typically means getting one more than half of the House members to vote for it.

But in the Senate, most legislation needs to reach a higher threshold. Usually that means it needs to get "yes" votes from at least 60 of the 100 senators to end debate on a bill and move to a vote.

Called the "cloture rule," the 60-vote threshold allows a party in the minority to keep a bill from receiving a vote through what is called a filibuster. Once up for vote, a simple majority can pass a bill.

Because one party seldom has 60 or more senators, that means most bills need at least a bit of bipartisan support to pass.

Budget bills are not subject to the cloture rule, and does not need the president's signature. That includes bills included in budget reconciliation, which can be used to pass legislation that changes federal spending or revenue, and is typically only once a year.

In budget reconciliation, Senate committees write bills that change spending, revenues, deficits or the debt limit by specific amounts. Those bills are then combined and voted on, needing only a simple majority to pass.

In order for the reconciliation process to take place a reconciliation directive has to be included a Congressional budget when it is passed, as was the case with the 2022 budget.

The Senate is split 50-50 and Republicans appear united in opposition. Therefore the 51st vote would be that of Vice President Kamala Harris, unless someone is absent or declares "not voting."

But, Democrats are in negotiations with the White House over the $3.5 trillion bill. President Joe Biden described those talks Friday as a stalemate.