Chamber Urges Lawmakers to Act on White House Growth Agenda

Chamber Urges Lawmakers to Act on White House Growth Agenda
Economic Growth Package Focuses on Money for Consumers

WASHINGTON, D.C. – The United States Chamber of Commerce welcomed congressional efforts to introduce an economic growth package, as proposed by President Bush during his State of the Union address.

"We need to move quickly to put money in the hands of people that are going to spend it and invest it," said Donohue. "The President's proposal for growth and recovery is an important insurance package for a reenergized economy."

Recent economic reports have shown the economy to be growing, although unevenly and well below its full potential. Congress must act on new measures to insure continued economic vitality, according to the Chamber. Putting more disposable income in the hands of consumers, and making those changes permanent, while opening new windows of opportunity for businesses to invest, will have the greatest positive impact on the economy.

The Chamber has repeatedly expressed support for key elements of President Bush's economic growth plan: moving up individual rate reductions already passed by Congress; accelerating depreciation; additional relief for low and moderate income individuals; and eliminating the double taxation of dividends.

Correcting the tax treatment of dividends will raise stock prices, benefiting all investors, not just those who receive dividends, according to the Chamber. Surveys show about half of U.S. households owned stock in 2002 — many through 401(k)s, IRAs, and pension plans. These 53 million households consist of more than 84 million individuals who will all profit from the elimination of dividend taxes.

"Economic growth generated by the private sector pays the bills in our society. Only by creating growth can we protect our national security, win the war on terrorism, create more jobs and provide health care for American families," said Donohue. "There are a lot of uncertainties facing this country today, but with strong leadership in Congress and in the business community, we will get the economy moving again in a big way."

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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