Prompt passage of tax reform will be a major driver of hiring and capital spending decisions, according to a Business Roundtable survey of large company CEOs — and failure or excessive delay could reduce planned investment and ding economic growth. Nine in 10 CEOs said that delaying tax reform would result in lower economic growth, lower job growth and less investment.
More specifically, 57 percent said delays in tax reform would delay their own firms’ capital spending plans, and 56 percent said it would delay hiring plans. More than three quarters of CEOs said that tax reform would lead to higher capital spending, greater global competitiveness and more hiring. Corporate tax reform is the single best way to accelerate economic growth, said seven in 10 CEOs.
“The United States faces a once-in-a-generation opportunity to reform our outdated tax system,” said Jamie Dimon, chairman and CEO of J.P. Morgan Chase and chairman of the Business Roundtable. “This is an opportunity we must urgently act on.”