Editor’s note: U.S. Chamber of Commerce President and CEO Thomas J. Donohue issued the following response to President Barack Obama’s speech Wednesday about his plan to reduce the nation’s debt and deficit.
We are pleased that the President has moved beyond his original budget proposal and recognized that meaningful budget reform must entail curbing our excessive and unsustainable spending. However, we believe that our long-run fiscal policy must include real reform of Medicare, Medicaid and Social Security as well as curbs to discretionary spending.
While we recognize that addressing our deficit and debt problems should include tax reform that establishes a broader base and lower rates, we must not confuse real tax reform with tax increases. Simply raising more than $1 trillion in new taxes will not produce economic growth or prosperity.
Unfortunately, the President’s tax proposals rehash the same misguided tax policy that was overwhelmingly defeated by bipartisan majorities in the House and Senate. It relies predominantly on increasing taxes on those individuals that save and invest and on successful small businesses. It fails to recognize the high degree of progressivity in the current code or that real tax reform must address both the corporate and individual parts of the code.
Once again, we welcome the President’s entry into the debt and deficit debate and we look forward to working with the administration and Congress as the details are hammered out.
