In a luncheon speech last week at the Economic Club of Washington, the Chairman of the Business Roundtable accused the Obama Administration and the Democratic-controlled Congress of creating a "hostile environment for investment and job creation."
Roundtable Chairman Ivan G. Seidenberg said the group has become increasingly troubled by "a growing disconnect between Washington and the business community that is harming our ability to expand the economy and grow private-sector jobs"
Seidenberg, who is Chairman and CEO of Verizon Communications, called attention to current and proposed government policies that he says threaten to stifle economic growth.
Speech Raises Eyebrows in Washington
Seidenberg's speech raised eyebrows in Washington because the Business Roundtable has been the Administration's closest ally in the business community.
In his speech, Seidenberg said that "by reaching into virtually every sector of economic life, government is injecting uncertainty into the marketplace and making it harder to raise capital and create new businesses."
Roundtable's Key Areas of Concern
Seidenberg highlighted three key areas of concern to the Roundtable's membership of top corporate executives:
"A tax system that puts American companies at a disadvantage to foreign competitors; financial reform legislation on derivatives and proxy access that will increase volatility and risk in the market, and inaction on trade that threatens America's international competitiveness and ability to generate export-driven jobs for U.S. workers."
Plan to Promote Economic Growth, Job Creation
After spotlighting these challenges, Seidenberg outlined a five-point plan for reinvigorating U.S. economic growth and creating private-sector jobs:
Tax policies that promote capital formation: An extension of accelerated depreciation tax provisions, which would provide an immediate boost to the economy. Every dollar of tax cuts devoted to accelerated depreciation creates about nine dollars in economic growth.
Increase in exports and international competitiveness: Emphasis on trade agreements, corporate tax reform and other initiatives to improve American companies' ability to compete in international markets.
Infrastructure investment to create jobs and build platforms for 21st century growth: Upgrades to transportation and energy with communications and information technology to create "smart" grids that will improve efficiency and productivity.
Improvements in the nation's educational system: Increase the focus on science, technology, engineering and mathematics (STEM).
Support for innovation and entrepreneurism: Make permanent the tax credit for research and development, enact more effective protections for intellectual property and sustain federal investment in basic research.
"Expand Private Sector, Not Government"
"The most important steps government can take to stabilize financial markets, restore consumer confidence and create an environment for growth is to commit to fiscal discipline and recognize that sustainable growth will only occur when the private sector -- not the government -- is expanding," Seidenberg said.
In a response to Seidenberg's speech, White House spokeswoman Jennifer Psaki said that "the President has consistently pursued policies designed to create a better climate for American businesses in order to foster job creation, innovation and economic growth. We have always had an open door to the business community, and we look forward to an ongoing dialogue."
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