Now that the Trump administration has released its wish list of tax law changes, most chief executives surveyed recently by the Business Roundtable want Congress to act on those changes sooner rather than later.
According to the survey, 90 percent of CEOs believe that if tax reform legislation is delayed, the economy will suffer. How? A delay would cause slower economic growth (92 percent), a decrease in employment growth (91 percent), and lower levels of investment spending (89 percent).
In addition, 57 percent of CEOs said delaying tax reform would result in their company holding off on capital spending, while 56 percent said their company would put off hiring plans.
The consensus of the 123 chief executives polled by the Business Roundtable, an association of CEOs representing major US corporations, is that tax reform will result in more jobs, investment, and growth.
Eighty-two percent said tax reform will prompt companies to increase capital spending, and 76 percent said reform will increase hiring. Seven-seven percent said tax reform will improve their company’s global competitiveness.
In addition, 71 percent of CEOs said corporate tax reform is the best way to accelerate economic growth over the next year.
“CEOs overwhelmingly believe that tax reform is the most effective way to put more Americans to work in a stronger, growing economy,” Business Roundtable President and CEO Joshua Bolten said in a written statement. “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 US economy, these survey results confirm that tax reform is a critical priority if we are to grow the economy and create jobs and opportunity.”
According to the Trump administration’s most recent tax reform plan, which was released on April 26, the top corporate tax rate would be reduced from 35 percent to 15 percent, which many business leaders support.
The plan also calls for the United States switching to a territorial tax system, in which businesses would only pay tax on income earned within the United States.
“The United States faces a once-in-a-generation opportunity to reform our outdated tax system,” said Jamie Dimon, chairman of the Business Roundtable and chairman and CEO of JPMorgan Chase & Co. “We applaud the efforts of Congress and the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.”