Top Business Leaders Push Major Deficit Reduction Deal

Top Business Leaders Push Major Deficit Reduction Deal

By Ed Henry

FOX News

WASHINGTON -- A coalition of about 150 top business groups is urging the Super Committee on Capitol Hill to go big on a deficit deal, pushing the panel in a letter first obtained by Fox News to put both entitlement cuts and major tax reform on the table in order to squeeze out far bigger savings than is in the panel's mandate.

While the letter organized by the powerful U.S. Chamber of Commerce, the Business Roundtable, and the National Association of Manufacturers does not cite a specific dollar figure, a senior official involved in the effort told Fox News the leaders would like the panel to shoot for a deal in excess of $4 trillion in deficit reduction.

President Obama recently unveiled a deficit reduction package in the range of $3 trillion to $4 trillion, which included about $1.5 trillion in tax increases. Republicans have shown little or no support for Obama's plan and top aides in both parties privately say they do not currently expect that a deal of that size can be ironed out.

But the business groups have a significant amount of clout on Capitol Hill and, in the letter dated Thursday, they urged the 12 members of the panel to "go beyond the legislative mandate of the Balanced Budget Control Act of 2011 to achieve savings of $1.2 to $1.5 trillion to ensure that we stabilize our nation's debt and put the debt's share of the economy on a downward path. This is essential for long-term economic growth in our nation."

Rep. Chris Van Hollen (Md.), a Democrat who serves on the Super Committee, told Fox News he's still hopeful that a deal of this magnitude can get done but is skeptical all sides can come together.

"I've always been in the camp where I hope we can go big, get some sort of an overarching agreement that tackles a lot of these issues," said Van Hollen, who also serves as the top Democrat on the House Budget Committee.

But, Van Hollen added, "I don't know if we'll be able to get there or not. Only time will tell. I think there is a seriousness of purpose of getting everyone to work very hard in a very short period of time to get the job done."

Rep. Andy Harris (R-Md.) noted there is a huge challenge looming over the Super Committee, which has to get both chambers of Congress to reach a final deal right before Christmas, based on the law that created the panel during this summer's debt ceiling negotiations.

If the panel fails to reach a bipartisan agreement, the law mandates there will be a process known as "sequestration" in which painful cuts to the Pentagon as well as entitlement programs like Medicare will kick in to reach the $1.2 trillion target.

"I suspect we may be delaying our holiday break, our holiday recess for a while we go over at that issue," said Harris. "But then again, we have statutory deadlines to meet. And we have automatic sequestration if we don't meet those deadlines. So one way or the other, there will be $1.2 trillion cut from the budgets in the next ten years. The question is how will we get to that $1.2 trillion."

The letter from the largely Republican-friendly business groups may put pressure on GOP leaders to put major tax reform on the table in the negotiations, something they have been reluctant to do.

Speaker John Boehner[2] (R-Ohio) though recently gave a speech suggesting the panel should lay out principles and a process for dealing with comprehensive tax reform to lower corporate and individual rates.

While the business leaders do not mention tax increases in the letter, they seem to suggest they would go further than Boehner by pushing the panel to go beyond just principles and actually get a more specific tax reform deal.

"This letter reinforces the Speaker's message that American job creators need us to lift the cloud of uncertainty caused by our deficit and reform our tax code to support private sector job growth," Brendan Buck, spokesman for Boehner told Fox.

During their so-called "grand bargain" negotiations, Obama and Boehner discussed eliminating some tax deductions in exchange for lowering corporate tax rates in order to try and spur economic growth and thus bring in more tax revenue to the Treasury. But the talks broke down, in part because Obama was also pushing specific tax increases and Boehner balked.

"Put simply, Congress must reform entitlement programs and comprehensively restructure the U.S. tax code," the groups wrote to the Super Committee, though they did not outline anything close to a specific plan for action. "The U.S. tax system is in desperate need of simplification and fundamental, comprehensive reform that encourages investment and employment."

The letter was signed by dozens of groups, from the American Gas Association to the National Lime Association.

Industry Groups Push Super Committee to Go Big

By John Stanton

Roll Call Staff

Sept. 29, 2011, 1:31 p.m.

Business leaders today called on the Joint Committee on Deficit Reduction to significantly expand its efforts to reduce the deficit and include comprehensive tax and entitlement reform.

In a letter to all 12 members of the super committee, the National Association of Manufacturers, the Business Roundtable and the U.S. Chamber of Commerce urged the super committee “to go beyond the legislative mandate of the Balanced Budget Control Act of 2011 to achieve savings of $1.2 [trillion] to $1.5 trillion to ensure that we stabilize our nation’s debt and put the debt’s share of the economy on a downward path.”

“This is essential for long-term economic growth in our nation,” the organizations wrote. “We believe it is crucial to act expeditiously to rein in spending, reform the tax code, reduce the deficit, and stabilize and ultimately lower America’s level of debt. ... We believe that these steps will remove the threat of fiscal instability, improve certainty, and create a sustainable foundation for economic and job growth in the years ahead.

“Put simply, Congress must reform entitlement programs and comprehensively restructure the U.S. tax code,” the letter says, which was also signed by 151 local and state chambers of commerce.

President Barack Obama and Members from both parties have also pushed the panel to include tax reform and other issues in its work as part of his jobs agenda. However, some Members of the panel, such as Sen. Jon Kyl (R-Ariz.), have indicated that just hitting the minimum $1.2 trillion in deficit reduction might be a heavy lift.

The three business groups are enormously influential voices in Washington, particularly among Republicans, and their support for an expansion of the committee’s mandate could help push Members to try and tackle tricky issues such as tax reform.

Business groups push supercommittee to ‘go big’ on cuts, tax reform

By Peter Schroeder

The Hill

09/29/11 12:10 PM ET

The business community is joining the call for the supercommittee to "go big" and exceed its mandate of finding $1.5 trillion in deficit cuts, and to tackle entitlement and tax reform along the way.

In a letter sent to the 12 members of the supercommittee, 155 business groups said Congress has no choice but to reform entitlement programs and the tax code to ensure the nation's economy can continue to grow, as well as to restore confidence in policymakers.

Some of the nation's largest business groups, including the U.S. Chamber of Commerce, Business Roundtable and National Association of Manufacturers, signed on to the plea. Several other groups and lawmakers have previously called on the supercommittee to do the same.

The group urged the panel to act "expeditiously" in tackling the deficit, and called on it to exceed its legislative mandate of finding between $1.2 trillion and $1.5 trillion in deficit cuts.

"We believe that putting in place a multi-year growth and deficit reduction strategy that reforms entitlements, implements comprehensive tax reform, and stabilizes the debt as a share of the economy is critical in creating the stability the business community needs, growing the economy, and restoring Americans' faith in the political system," they wrote.

There is a "desperate need" to simplify and fundamentally overhaul the tax code, including major changes to the individual and corporate tax rate, the letter argued. The groups point out that 75 countries have cut their corporate tax rate in the last four years, and the U.S. needs to follow suit to stay competitive, they said.

On entitlements, the sooner the supercommittee can act, the better. Prompt action would allow those safety-net programs to be reformed in a way that would protect benefits for current and near-term retirees, while allowing any changes to be phased in over time for future beneficiaries.

Businesses to Super Committee: Cut More

By Chris Frates

September 29, 2011

National Journal

More than 150 business organizations sent a letter to the Divine Dozen today urging them to go big and slash more than the $1.5 trillion in federal spending called for by law. The U.S. Chamber of Commerce, Business Roundtable, the National Association of Manufacturersand others called for corporate tax and entitlement reform.

The message is nothing new, but rather another shot in the emerging battle over entitlement reforms, which pits business groups against organizations that represent seniors. And the entitlement protectors have already begun organizing and advertising against cuts to Medicare and Social Security.

The takeaway from today's letter:

We believe it is crucial to act expeditiously to rein in spending, reform the tax code,reduce the deficit, and stabilize and ultimately lower America's level of debt. Economic growthis critical to our nation's fiscal health, and we believe that these steps will remove the threat offiscal instability, improve certainty, and create a sustainable foundation for economic and jobgrowth in the years ahead.

September 29, 2011

TO THE MEMBERS OF THE UNITED STATES CONGRESS JOINT SELECT COMMITTEE

ON DEFICIT REDUCTION:

The undersigned organizations urge you, as a member of the newly appointed Joint Select

Committee on Deficit Reduction, to go beyond the legislative mandate of the Balanced BudgetControl Act of 2011 to achieve savings of $1.2 to $1.5 trillion to ensure that we stabilize ournation's debt and put the debt's share of the economy on a downward path. This is essential forlong-term economic growth in our nation.

We believe it is crucial to act expeditiously to rein in spending, reform the tax code,reduce the deficit, and stabilize and ultimately lower America's level of debt. Economic growthis critical to our nation's fiscal health, and we believe that these steps will remove the threat offiscal instability, improve certainty, and create a sustainable foundation for economic and jobgrowth in the years ahead.

Put simply, Congress must reform entitlement programs and comprehensively restructure

the U.S. tax code.

The U.S. tax system is in desperate need of simplification and fundamental,comprehensive reform that encourages investment and employment. Comprehensive reform ofcorporate and individual taxes has been urged by individuals and groups as diverse as the HouseBudget Committee chairman, the chairmen of the Senate and House tax-writing committees, theTreasury Department, the National Commission on Fiscal Responsibility and Reform amongmany others. We believe the primary goal of tax reform should be improving the nation's long-term economic growth, which will lift Americans' living standards and create jobs.

Globally, in just the past four years, 75 countries have cut their corporate tax rates tomake themselves more tax-competitive and increase economic growth. America's largesttrading partners--Canada, Great Britain, and Japan--have all taken steps to become morecompetitive. Meanwhile, our nation's small businesses are facing the prospect of a crushing 39.6percent tax burden. We must have policies that lead to faster, more sustainable economic growthto employ and reemploy millions of Americans. Policies conducive to long-term economicgrowth are one of the keys to fixing the long-term fiscal crisis facing the country.

Regarding entitlement reform, our nation's demographics will continue to put increasingfinancial pressure on our entitlement systems, as more than 70 million baby boomers begin theirretirements starting this year. Reforms to major entitlement programs should be made as quicklyas possible so that the benefits of current and near-term retirees are secured and changes in futurebenefits can be phased in over a period of time.

We believe that putting in place a multi-year growth and deficit reduction strategy thatreforms entitlements, implements comprehensive tax reform, and stabilizes the debt as a share ofthe economy is critical in creating the stability the business community needs, growing theeconomy, and restoring Americans' faith in the political system.

We strongly urge you, as a member of the Joint Select Committee on Deficit Reduction,to go beyond the specific mandate of the Budget Control Act and take the steps necessary toachieve these critically important objectives.

Sincerely,

Air Conditioning Contractors of America

American Bakers Association

American Beverage Association

American Chemistry Council

American Coatings Association

American Council of Engineering Companies

American Financial Services Association

American Forest & Paper Association

American Foundry Society

American Gaming Association

American Gas Association

American Insurance Association

American Lighting Association

American Rental Association

American Supply Association

American Trucking Associations

AMT - The Association For Manufacturing Technology

Ardmore Chamber of Commerce

Arizona Chamber of Commerce and Industry

Arizona Small Business Association

Arizona Manufacturers Council

Arizona New Mexico Cable Communications Association

Arkansas State Chamber of Commerce/AIA

Arlington Chamber of Commerce - TX

Associated Builders & Contractors, Inc.

Associated Builders & Contractors, Rocky Mountain Chapter

Associated Equipment Distributors

Associated General Contractors of America

Associated Industries of Florida

Association of Equipment Manufacturers

Association of Global Automakers, Inc.

Association of Home Appliance Manufacturers

Association of Washington Business

Brick Industry Association

Buckeye Valley Chamber of Commerce - AZ

Building Owners and Managers Association (BOMA) International

Business Roundtable

Business Council of NY State, Inc.

California Manufacturers & Technology Association

Chattanooga Regional Manufacturers Association

Club Managers Association of America

Colorado Association of Commerce & Industry

Concrete Reinforcing Steel Institute

Consumer Specialty Products Association

CTIA - The Wireless Association

Delaware State Chamber of Commerce

Denver Metro Chamber of Commerce - CO

Draper Area Chamber of Commerce - UT

Edison Electric Institute

Employers Group

European-American Business Council

Fairfax County Chamber of Commerce - VA

Fairfield Chamber of Commerce - CT

Farm Equipment Manufacturers Association

Financial Executives International

Financial Services Institute

Food Marketing Institute

Fox Cities Chamber of Commerce & Industry - WI

Georgia Association of Manufacturers

Global Cold Chain Alliance

Greater Raleigh Chamber of Commerce - NC

Greater Shreveport Chamber of Commerce - LA

Idaho Association of Commerce & Industry

Illinois Manufacturers' Association

INDA, Association of the Nonwoven Fabrics Industry

Indiana Manufacturers Association

Industrial Fasteners Institute

International Franchise Association

Iowa Association of Business and Industry

Johnson City/Jonesborough/Washington County TN Chamber of Commerce

Kalispell Chamber of Commerce

Kentucky Association of Manufacturers

Kitchen Cabinet Manufacturers Association

Lynchburg Regional Chamber - VA

Maine State Chamber of Commerce

Manufacture Alabama

Metal Powder Industries Federation

Metal Treating Institute

Metals Service Center Institute

Michigan Chamber of Commerce

Missouri Association of Manufacturers

Mobile Area Chamber of Commerce - AL

Montana Chamber of Commerce

Motor & Equipment Manufacturers Association

NADCA - GA

NADCA - IL

National Association of Chemical Distributors

National Association of Manufacturers

National Automatic Merchandising Association

National Beer Wholesalers Association (NBWA)

National Council of Chain Restaurants

National Electrical Contractors Association

National Lime Association

National Marine Manufacturers Association

National Restaurant Association

National Retail Federation

National Roofing Contractors Association

National Shooting Sports Foundation

Nebraska Chamber of Commerce & Industry

Nevada Manufacturers Association

Non-Ferrous Founders' Society

North American Association of Food Equipment Manufacturers

North Carolina Chamber

North Dakota Chamber of Commerce

Northeast PA Manufacturers & Employers Association

NPES - The Association for Suppliers of Printing, Publishing and Converting Technologies

Nuclear Energy Institute

Ohio Society of CPAs

Outdoor Amusement Business Association, Inc.

Outdoor Power Equipment Institute

Pennsylvania Business Council

Pennsylvania Chamber of Business and Industry

Pennsylvania Manufacturers' Association

Printing Industries of America Inc

Property Casualty Insurers Association of America

ProsperityAlaska.org

Puerto Rico Chamber of Commerce

Rhode Island Manufacturers Association

Rowan County Chamber of Commerce - NC

Salisbury Area Chamber of Commerce - MD

San Antonio Manufacturers Association

Schuylkill Chamber of Commerce - PA

Securities Industry and Financial Markets Association

Small Business & Entrepreneurship Council

Society of Chemical Manufacturers & Affiliates

South Carolina Chamber of Commerce

South Shore Chamber of Commerce - MA

Springfield Area Chamber of Commerce - MO

Steel Manufacturers Association

Strategic HR Partners LLC

Tempe Chamber of Commerce

Tennessee Chamber of Commerce & Industry

Texas Association of Business

The Aluminum Association

The Council of Industry of Southeastern New York

The Council of Insurance Agents & Brokers

The Financial Services Roundtable

The Greater El Paso Chamber of Commerce - TX

The Kansas Chamber

The Longview Chamber of Commerce & CVB - TX