Business Community Far From United On Response to Treasury Tax Plan: ...
In mid-January, the National Association of Manufacturers issued a report warning that the Treasury DepartmentÛªs tax-simplification plan would harm capital formation and productivity, and could have a "highly unfavorableÛ effect on economic growth.</br></br>One week later at the regular NAM board of directors meeting, executives of such companies as General Motors and Procter & Gamble protested, saying they did not want their association criticizing a proposal that would lower tax rates for their firms. A flurry of letters from other members made the same point.</br></br>When NAM Chairman Stanley C. Pace of TRW met with Treasury Secretary James A. Baker III on Friday, he endorsed the concept of reform and lower rates, but expressed concern about some of the investment provisions. ÛÏWe are not going to pick sides,Û said NAM Vice President Jerry Jasinowski.</br></br>As the NAMÛªs experience shows, the lobbying battle lines on tax simplification are far from firm. More than three months after the Treasury Department made its proposal and less than two months before the final version is expected to go to Congress, many business interests donÛªt know which side they are on.</br></br>"They donÛªt know what their priorities are,Û said a staff member of the House Ways and Means Committee. ÛÏIn 1981 [when Congress passed a major business tax cut], it was a monolith.Û