Welcoming Address - America's Small Business Summit, Remarks by Thomas J. Donohue, President and CEO, U.S. Chamber of Commerce

THOMAS J. DONOHUE
President and CEO
U.S. Chamber of Commerce

Washington, D.C.
Thursday, April 17, 2008

As Prepared for Delivery

Good morning ladies and gentlemen, and welcome to America's Small Business Summit 2008.

Let me begin by thanking our sponsors, whose generous support made this event possible.

Thanks are also due to the Chamber staff who have worked very hard to bring this summit together. It's a special testament to their efforts, and to the significance of this summit, that President Bush has decided to address us tomorrow.

But most of all, I'd like to thank each and every one of you for being here today.

It would be easy to sit back and say, "Let someone else get involved. Let someone else take action. I'm busy with my business and my family."

But you've made the choice to get involved and are giving your most precious resource-your time.

Why '08 Matters

Every two years, it seems like they dust off that old cliché-that this upcoming election will be the most important election in our lifetimes.

But you know what? This year, it could very well be .

It's not a question of Republicans or Democrats.

It's about choosing a new government that understands and believes in the principles of a free enterprise society. At stake is whether we have a government that will leave you with the freedom and flexibility you need to grow, succeed, and create opportunities for your families and your employees.

America stands at a crossroads right now. Many of our political leaders and candidates - indeed many of our fellow citizens - are questioning whether free markets really work or whether trading with the world is a good thing.

They seem to be looking to bigger and more expensive government for the answers to all our problems. They are advancing proposals that could fundamentally change our economic system - and not for the better.

It's understandable why many Americans are confused and concerned. We're in a rough period right now. The housing and credit crises have undermined our economy and the public's confidence. Growth has slowed to a trickle. Unemployment is rising. Energy and health care costs are soaring.

In the face of these problems, Americans understandably want change. Well, so do we. But it must be the right kind of change. Change that works. Change that reignites economic growth in the private sector - not payroll growth in the public sector. Change that puts more faith in people -and not in the government.

These are the choices facing America this election year.

If the wrong candidates are elected, and if the wrong agenda takes hold, you as small businesspeople can take all the challenges you now face and double them!

What some of our labor unions, class action trial lawyers, and environmental activists are pushing on the candidates is just plain scary. And, they are pulling out all the stops to elect a government to do their bidding.

Let me give you a few examples from their wish list.

Taxes

First and foremost, they want government to have a lot more money to spend. Guess where they plan on getting it from - mostly from you!

By letting the Bush tax cuts expire, they can bring about the biggest tax hike in history - without even having to vote on it.

Most small businesses pay their income taxes as individuals, and many of these businesses find themselves in the higher brackets. Those taxes would be the first to go up.

So would taxes on capital gains and dividends. And the death tax - which we have all worked so hard to stamp out - will come roaring back to life.

Healthcare

Take a look at healthcare. Some of the 2008 candidates want a universal healthcare system dictated and controlled by Washington.

One way or another, this will add up to new costs and new mandates on businesses.

None of the government plans I've seen make any serious effort at controlling costs. Without market based reforms, you could have double-digit premium increases for as far as the eye can see.

Trade

On the subject of trade, we've already heard a lot of hot rhetoric from the campaign trail - and hardly any of it makes any sense.

95 percent of the people we want to sell things to in this world live outside the United States. Does it make any sense to isolate America from all those customers?

We need free and fair trade - and since our markets are already open, guess how we get it? By enacting more good trade agreements, including a Doha agreement. That's the way to pry open foreign markets and level the playing field for our workers and businesses.

When the House voted to shut down the process of approving the Colombia Free Trade Agreement last week, it was an attack on American workers, companies and farmers.

Nearly everything the U.S. imports from Colombia enters duty free. However, when Americans sell their goods to Colombia, they face average tariffs of 14% for manufactured goods and higher for agricultural goods.

Isolationism is the wrong path for our country. It has never worked. It sells us short. Yet that's the path we could find ourselves traveling next year.

Labor

Let's look at what the unions hope to accomplish. They want to fundamentally change the carefully balanced labor-management rules to make it easy to unionize companies and shops of all sizes.

First, they want to pass something called the "Card Check" bill, which would essentially eliminate secret ballots in union elections - enabling union organizers to harass and intimidate workers into signing union cards, even at their homes.

Second, they want the right to create "mini-unions" - tiny groups of workers they could organize in workplaces, and then force the employer to negotiate with them.

If these measures become law, businesses like yours will be under siege.

The union agenda also includes a broad array of new regulations and mandates governing the workplace.
These include: mandatory paid sick leave; expanding the Family Medical Leave Act to include paid time off; more employment-related lawsuits against businesses; and many others.

They also want to resurrect a sweeping ergonomics standard, which would force the redesign of almost every workplace in the country…at your expense.

The unions recently announced plans to deploy a million labor activists to push their agenda in 2008. We need you to take action as well, to let your elected representatives know that they need to stand up for small business, not Big Labor.

Energy

And in energy, some environmental activists want to impose draconian new regulations that would make it nearly impossible to meet growing energy demand.

They want to dictate what kind of energy you can use, when you can use it, and how much you can use, while at the same time choking off access to any new supplies.

We need access to affordable, diverse, and clean supplies of energy that will keep American business moving forward.

Legal & Regulatory Issues

The trial lawyers have big ideas as well. They want to expand lawsuits on all fronts - and target businesses of all sizes. They want to end arbitration, meaning you spend more time in court fighting lawsuits than you do growing your business.

We need legal and regulatory systems that put the focus on fairness instead of jackpot justice sought by the class action lawyers.

How Business Can Fight Back

More taxes, more lawsuits, more unions, more regulations…

And less trade, less energy, less innovation, and less enterprise.

That's the wrong approach for America, and the American business community must keep our country from following this disastrous path.

How do we do it? First, we must advance a positive course of action for our economy and our country.

It's not enough to simply be against things. We must work for an agenda that addresses the serious challenges facing our nation.

And second, we must meet our adversaries on the ground in this pivotal election year. We must have the most vigorous voter education and political program in history to turn out the business vote.

Let me say a few words about each of these critical steps.

Competitiveness Agenda

At the Chamber, we've articulated an alternative path that we believe will lead to a stronger, more confident, and more secure America.

Our competitiveness agenda outlines the fundamental reforms required to sustain economic growth, create good-paying jobs, and expand prosperity to every corner of the nation.

The equation is very clear.

Human Talent
It starts with human talent. Every child deserves a quality education. No more excuses. No more delays. No more tiptoeing around entrenched bureaucracies and unions.

We must understand that in the 21st century, the race for human talent will define the global winners and losers more than any other factor.

We must also welcome law-abiding, hard-working immigrants to our shores. We need their drive and their dedication. We need the workers!

Labor Agenda
And we also need workplaces and workforce rules that are fair and flexible. That's why we so strongly oppose the unions' effort to turn back the clock to the 1950s.

Infrastructure
We must also modernize and expand America's infrastructure that moves power, people, freight, and water.

One-third of our major roads are in poor or mediocre condition, and a quarter of our bridges are structurally deficient or functionally obsolete.

The U.S. aviation system is incapable of efficiently handling the current passenger load, much less the 1 billion passengers expected in just 7 years.

We must begin now to address this growing crisis.

Energy
Without clean, secure and affordable supplies of fuel and power our economy is going nowhere.

At the Chamber, we created the Institute for 21st Century Energy to develop and push a rational program that supports all forms of energy - traditional and alternative - while also advancing technologies that improve efficiency and reduce the carbon output of the energy we use.

Capital Markets
We must also strengthen U.S. capital markets for entrepreneurs and all investors. Every company, whether big or small, public or private, needs capital to run its business.

This is why the competitiveness of our capital markets is important not just on Wall Street, but on Main Street.

Trade and IP
I have already mentioned trade. As we work to open markets for American producers around the globe, we also need to find a better way to talk about trade to our fellow citizens.

We must explain how it benefits the vast majority - and we must promote solutions for the few that are dislocated by changes in the global economy.

Protecting intellectual property, and stopping counterfeiting and piracy are essential as well. America is a leader in IP and we can't be competitive if we allow it to be systematically ripped off.

Taxes and Legal Reform
And instead of talking about raising taxes, our leaders should be working to create a more competitive tax system - with rates that are lower, not higher, than our competitors, and with policies that spur investment and risk-taking.

And I for one am tired of the United States of America being known as the lawsuit capital of the world.

During my meetings with foreign companies and investors, it's often the first and most worrisome thing they bring up.

Health and Entitlements
And finally, we've got to address the ticking time bomb in our society - skyrocketing healthcare and entitlement costs due in large part to changing demographics.

I wish I could tell you that the Chamber has all the answers to this challenge. We do not. But the business community must lead. The consequences of the health and entitlement burden could be catastrophic for our economy. And it is simply irresponsible to sweep our healthcare and entitlement challenges under the rug for a future generation to deal with.

Election Year Program
This is the agenda that the Chamber is working to advance, and we need your help.

Through this election year and beyond, we must work like never before to educate and rally our businesses, coworkers, and employees.

We must turn out the business vote, challenge the misinformation being presented to the public, and use language that more effectively communicates our vision.

You've heard previous speakers talk about this being a change election.

Well, we are the change! We are the ones that reject the stale answer of government being the solution to every problem.

We are the ones with a positive plan for change that can revitalize our economy and keep the American dream alive for future generations.

But it's not nearly enough for us to talk among ourselves about this vision.

We need to communicate it far and wide.

Later today, buses will be leaving for the Chamber's "Rally On the Hill."

I strongly encourage you to take this opportunity to meet with your lawmakers. Let them know about the challenges that you face as a small businessperson.

This year, the Chamber will be pouring unprecedented resources into the most aggressive business program ever to educate our fellow citizens - and to communicate with our members and our federation on behalf of Congressional candidates of both parties who understand what American enterprise really needs to grow and prosper.

You and millions like you across the nation are indispensable to this effort. We can't do it without you.

Together, we can help our elected legislators see the light. And if they don't, we'll make them feel the heat in November!

Let me conclude with a final thought. I really hope you take it to heart. This is a challenging year. Difficult economy - difficult election. After we've worked hard and done our best and left no stone unturned, if things don't go just the way we hope, there must be no despondency, no resignation, no crying in our soup.

With your support, we've built a strong Chamber that cannot be ignored. We'll work with any new government, and they'll have to work with us.

No matter who is elected to the White House and Congress, they are going to come into the office on the first day of their term and find the same set of challenges on their desks…

…The same challenges we've identified, the challenges that if properly met can reignite American growth across our country.

So thank you again for being here. Learn a lot, listen, ask questions, enjoy Washington in the spring time - but don't hesitate to tell everyone inside the Washington Beltway what is really going on out across the country. Speak up-be heard. Your elected officials and candidates really need to hear your voice - the voice of business - now more than ever.

Thank you very much.