Economy

Tax Reform Delay Will Harm US Economy: CEOs

Paul Ausick

Published: May 4, 2017 10:25 am

Last Updated: January 12, 2020 12:20 pm

Now that the Trump administration has revealed the outline of its tax reform plan, American businesses want the reforms to happen sooner rather than later.

A recent survey by the Business Roundtable showed that 90% of CEOs surveyed say that delaying tax reform will harm the overall U.S. economy by lowering economic growth (92%), lowering employment growth (91%) and lowering investment spending (89%).

The survey of 123 CEOs was conducted by the Business Roundtable between April 12 and April 25.

Business Roundtable CEO and President Joshua Bolten said:

CEOs overwhelmingly believe that tax reform is the most effective way to put more Americans to work in a stronger, growing economy. The Trump Administration’s recent release of its tax proposals was a significant step forward as they work with Congress on pro-growth reform legislation. By demonstrating the importance of tax reform to business and the U.S. economy, these survey results confirm that tax reform is a critical priority if we are to grow the economy and create jobs and opportunity.

Here are some data points from the survey results:

• 82% of CEOs say tax reform will increase companies’ capital spending.
• 76% say reform will generate more hiring.
• 77% say tax reform will improve their global competitiveness.
• 71% say tax reform is “the best way to accelerate economic growth over the next year.”

JPMorgan Chase CEO Jamie Dimon, the current chairman of the Business Roundtable, said:

The United States faces a once-in-a-generation opportunity to reform our outdated tax system. We applaud the efforts of Congress and the Administration to provide competitive business tax rates and modernize our international tax system. Jobs and the economy are at stake. This is an opportunity we must urgently act on.