A Business Roundtable survey of CEOs recently found that the majority believe that delaying tax reform will cause slower economic growth, hiring and capital investment.
Specifically, 57 percent of CEOs who responded to the survey said delaying tax reform will result in their company delaying capital spending. Fifty-six percent also said holding off on tax reform will delay their hiring plans.
Of the respondents, 82 percent said reform will prompt their companies to increase capital spending, while 76 percent said it will allow them to increase hiring. Seventy-seven percent said 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.
“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. “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.”
The survey polled 123 CEOs between April 12 and April 25.
If tax reform increased the growth rate of the U.S. GDP by one percentage point annually over the next five years, 53 percent of the companies surveyed would increase capital investment more than five percent by 2018 and 71 percent of companies would increase employment one to five percent by 2018.
“The United States faces a once-in-a-generation opportunity to reform our outdated tax system,” Business Roundtable Chairman Jamie Dimon, chairman and CEO of JPMorgan Chase & Co., said “We applaud the efforts of Congress and the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.”