Dozens of CEOs met with members of the Blue Dog Coalition today during several Business Roundtable gatherings to discuss ways to boost a slumping economy.
“Taking Action for America” is a plan that will balance the federal budget as well as reestablish federal regulations and lower taxes.
The Roundtable president, John Engler, met with President Obama on Tuesday evening and is scheduled to meet with Treasury Secretary Timothy Geithner later today.
The Roundtable chairman and Boeing Co. CEO, Jim McNerney, believes that until businesses can become united with government, successfully repairing the economy will not be possible. He suggested that tax reform must not wait until after the elections in November.
Andrew Liveris, who is the Dow Chemical Co. president and CEO stated that Washington cannot afford to do nothing.
The members of the Roundtable are CEOs of the biggest corporations in the country and are adamant about the creation of a “smart regulation”. This would help to eliminate some of the more complex regulations that do little more than cost these businesses undo money.
During Boeing’s dealings with the National Labor Relations Board last year, it was found that much of it was not productive. In fact, occasionally it felt led by political motivation. McNerney believed that the company should not have been subjected to the ordeal.
As Japan prepares to lower their tax rates in a few short weeks, the U.S. will gain the spot for the highest corporate tax rate in the world. While the Obama administration proposes the decrease in the rate of tax from 35 percent down to 28 percent, the CEOs believe that is not enough. For the tax decrease to gain the support of the Business Roundtable the tax rate would need to be around 25 percent.
Proctor & Gamble’s president and CEO believes that the time to lower taxes is at hand.
In order to pay-off the 15 trillion dollar federal debt and cut down the government’s one trillion dollar budget deficit, taxes should be increased to generate more revenue. The president was expressing his views to a group of business executives.
While speaking to members of the Business Roundtable, President Obama insisted that although his administration is working on a plan to cut spending, strategies to increase revenue should also be put in place.
Taxes will have a big impact on the outcome of 2012 elections.
All the potential Republican flag bearers Romney, Gingrich, Santorum and Ron Paul oppose tax increases. This means that the president will face a tough battle when campaigning for reelection.
There have been budget crises between the White House and Congressional Republicans who oppose tax hikes.
Whatever the outcome of the elections, there will be tax changes in December.
Payroll tax spearheaded by the Obama administration will come to an end while Bush tax cuts will also expire before the year ends.
President Obama wants to entrench the Buffet rule into the country’s tax code. If this happens, people making more than a million dollars annually will be forced to pay a flat rate of 30 percent in taxes. The president also plans to phase out Bush tax cuts for taxpayers with an annual income of more than 200,000 dollars or couples who make a total of 250,000 dollars annually.
The president claims that he only seeks a balanced approach towards tax collection:
President Obama is of the opinion that a simple adjustment can be made to the tax code to help in stabilizing the government.