Business Roundtable Calls for Immediate Enactment of Economic Stimulus Package

Business Roundtable members -- 160 chief executive officers of leading U.S. corporations -- noted in the letter that "a successful stimulus package will put a meaningful amount of cash into consumer's pockets quickly and create incentives for businesses to invest immediately, providing the jolt that this economy needs." To this end, Business Roundtable proposed a balanced package of narrowly focused, temporary consumer and investment-oriented tax reductions. Business Roundtable members' highest priority is sustained growth of the U.S. economy.

Editor's notes: The full text of the letter is below. Business Roundtable President John Castellani is available for comment.

On behalf of Business Roundtable, I am writing to express our strong support for the immediate enactment of bipartisan legislation to support economic growth through a stimulus package designed to boost consumer confidence and increase business investment to help mitigate the potential for a recession. We call on Congress to pass and you to sign such legislation in the next 30 days. The bipartisan cooperation that Congress and you have expressed demonstrates that such legislation can be enacted and implemented in a timely manner.

In recent weeks there have been increasing signs of a slowing economy, and its consequences have already been felt in certain areas of the country and in several business sectors including a severely distressed housing sector. In order to help prevent the likelihood of a slowdown spreading throughout the economy and to limit the duration of any such decline, a carefully constructed stimulus package, if immediately implemented, can have a very beneficial impact on the economy by maintaining employment and restoring the economy to a path of economic growth.

A successful stimulus package will put a meaningful amount of cash into consumers' pockets quickly and create incentives for businesses to invest immediately, providing the jolt that this economy needs.

Business Roundtable's highest priority is sustained growth of the U.S. economy. Our members, including 160 chief executive officers of leading U.S. corporations with a combined workforce of nearly 10 million employees and over $4 trillion in annual revenues, believe that long-term economic growth depends on maintaining fiscal discipline. During an economic downturn, however, it is well understood that fiscal measures to stimulate the economy in the short-term require an increase in the federal budget deficit. In particular, tax increases to pay for stimulus legislation would be most counterproductive.

Business Roundtable favors a balanced package of consumer and investment oriented tax reductions of a temporary nature to put the economy on a firmer foundation for restoring growth. Stimulus legislation should not rely to any significant degree on government spending. Government must make prudent use of the resources of this nation at all times. Stimulus legislation must not adversely affect those principles necessary to sustain long-term economic growth. The need to reach agreement on this legislation in a timely manner also sets a practical constraint that the legislation be narrowly focused.

Looking ahead, Congress also faces the need to address a number of tax issues to maintain the ability of businesses to create jobs and compete in an international economy. Actions required to keep America competitive include retroactive extension of the R&D credit, strengthening it and making it permanent. While not addressable in stimulus legislation, our corporate tax rate, once one of the lowest in the world, is now one of the highest and must be reduced. And we must ensure that American corporations that build and invest overseas are provided a level playing field in global markets so that they can serve as platforms for growth of the U.S. economy.

Business Roundtable looks forward to working with Congress and the Administration to ensure that this legislation provides effective and timely stimulus to return the economy to a strong path for growth.

We are sending this same letter to the Leadership of the Senate and House of Representatives.