As the Washington Post today reported, the chairman of the Business Roundtable “accused the president and Democratic lawmakers Tuesday of creating an ‘increasingly hostile environment for investment and job creation.’”
In a letter from the Business Roundtable and The Business Council to Office of Management and Budget Director Peter Orszag, these business leaders stated that policies pursued by President Obama and Congressional Democrats are “squelching economic growth and job creation.” The Business Roundtable represents American companies with over 12 million employees and that comprise nearly a third of the total value of the U.S. stock markets. The Business Council represents American businesses from a wide range of industrial and service sectors such as Ford Motors, US Steel and Caterpillar.
Below are just a few excerpts from the letter and the 41-page accompanying report that details current Democrat “Policy Burdens Inhibiting Economic Growth.”
The Big Picture:
“Many regulations and legislation – both existing and proposed – exacerbate the uncertainty created by today’s volatile economic environment….With a massive new health care law and financial reform legislation looming, companies are more worried than ever about the impact new regulations and legislation will have on their operations and their bottom line. Not knowing what to expect from these pending regulations, businesses are acting cautiously to forestall any negative impact. These actions are squelching economic growth and job creation, as companies are forced to freeze investments and hiring until they understand how they will be affected by these new mandates.” (p. 1)
Democrats’ Spending Is Too High and Harms Economic Recovery and Growth:
“The current levels of U.S. debt, as well as those required to finance the forecast deficits, will crowd out private capital. If less capital is available for corporate borrowers, it will retard future growth and investment, erode the value of the U.S. dollar, accelerate inflation and, eventually, reduce consumer spending power. Economic recovery must be lead by the private sector, both large and small, if we are going to create jobs and reduce the unemployment rate.” (p. 4)
Democrats’ Proposed Tax Increases on U.S. Employers Will Hinder Job Creation, Decrease Competitiveness:
“The Administration and Congress have proposed a number of policies relating to the taxation of foreign earnings that will harm the ability of global American companies to create and retain U.S. jobs….The international tax increases proposed by the Administration – as well as those contained in the current tax extenders bill (H.R. 4213) – would make sweeping changes to U.S. tax law that would make U.S. companies even less competitive in foreign markets and reduce the potential for job growth at home.” (p. 1-2)
“The Administration has proposed a number of regulations that threaten to dramatically undermine the ability of U.S. global companies to compete in the global marketplace – and this is worrisome. The Administration’s approach to domestic and international tax policy needs to pivot and recognize that U.S.‐based multinational companies must compete in a global economy to ensure domestic jobs and economic growth.” (p. 17)
Democrats’ Health Care Bill Will Increase Costs and Harm Employers’ Ability to Hire:
“[The Democrats’ health care overhaul] does little to change the underlying problems of our delivery system, which are the primary drivers of the unsustainable cost trends of employer provided care. Therefore, the ongoing cost increases in the system will continue to shift to the private market, putting additional cost burden on employers and other healthcare consumers….In addition, uncertainties associated with the law’s implications have already likely delayed business decisions regarding expansions and dampened new hiring. …The potential for detrimental unintended consequences on the nation’s economy and workers is very high.” (p. 20)
“The new tax [on private health insurance] will divert resources away from investment in new technology, process and jobs, and will significantly raise costs.” (p.21)
Democrats’ Failure to Sign Pending Trade Agreements Is Costing American Jobs:
“The Administration’s failure to move forward on pending free trade agreements and a more expansive presidential trade negotiating authority has emboldened foreign competitors while hurting our economy, global competitiveness and job creation. The Administration should swiftly resolve any outstanding issues and move forward with the implementation of free trade agreements with Colombia, Panama and South Korea, and must also seek a new presidential trade negotiation authority.” (p. 2)
###