President's Domestic Agenda More 'Tax and Spend' Government

WASHINGTON, D.C. – The United States Chamber of Commerce characterized spending programs in President Clinton's State of the Union speech as a "trillion dollar grab bag of new and expanding domestic tax and spend programs" that could undermine the nation's continued economic prosperity.

"The President appears to be on the verge of taking our hard-fought fiscal prosperity and throwing it away with both hands," said Bruce Josten, Executive Vice President of the U.S. Chamber of Commerce. "The President is proposing to spend budget surpluses, which may or may not materialize, faster than they can be counted. Any budget surplus rightfully belongs in the pockets of taxpaying Americans, not in the hands of a free-spending federal bureaucracy."

The lion's share of any non-Social Security surplus should be devoted to paying down the national debt and reducing taxes, according to Josten. Both actions will encourage greater investment, fuel continued productivity gains and business growth.

However, the President's call for lowering international barriers to American goods and services – primarily by opening China's market through permanent normal trade relations and by taking advantage of a recent trade deal – is strongly supported by the Chamber.

"The President said all the right things about the benefits of trade to the economy, to workers, consumers and businesses," said Josten. "But words are not enough. The Administration must loudly reject calls for isolationism and protectionism as shortsighted. Lower trade barriers and tariffs mean new opportunities for American farmers and businesses, more jobs, better wages and economic growth."

The Chamber will work with the President and Congress to ensure a broad understanding of the landmark opportunity presented by the U.S.-China trade deal to open up China's vast market to American companies of all sizes, while ensuring that China abides by international rules and regulations.

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

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