Business Roundtable Urges Congress To Keep Highway Bill Spending To Levels In Budget Resolution

CEOs Urge Congress to Reject Proposed Spending, Revenue Increases in Senate Version of Bill

WASHINGTON, D.C. (Wednesday, December 21, 2005) - Business Roundtable, representing 160 CEOs of leading U.S. companies, today urged Congress to develop a compromise federal highway bill that stays within the $284 billion cap on highway spending contained in the Congressional budget resolution approved in April.

In a letter to Congressional leaders, Business Roundtable President John J. Castellani said the Roundtable believes “it is imperative that the spending level set forth in the budget resolution and requested by the Administration be adhered to in order to reduce overall budget deficits.”

While the House-passed highway bill, H.R. 3, projects total spending of $284 billion over six years, the Senate-passed version of H.R. 3 contains $295 billion in spending, $11 billion over the budget resolution and the Administration’s request. The Senate version also contains $20 billion in revenue increasing provisions that would be unnecessary if spending were held to the level provided under the budget resolution. A House-Senate conference committee will work out differences between the two bills.

Noting that Business Roundtable’s highest priority is sustained growth of the U.S. economy, Castellani said that “significant fiscal discipline” is required for future economic health. “A vibrant economy today and a growing future economy is best assured through continued progress toward deficit reduction through spending restraint,” he said.

“Necessary improvements to the highway system should be easily accommodated within the budget resolution’s spending level,” Castellani said. “We believe it is unwise to increase taxes to pay for excessive spending,” he added.

The Roundtable’s letter also pointed out that many of the revenue increasing provisions in the Senate bill were rejected last year during Congress’ consideration of the American Jobs Creation Act of 2004. “Little has changed since Congress last decided to reject these provisions,” Castellani said. “We believe that many of these provisions are a departure from sound tax policy, will result in unnecessary costs, and will further hamper the competitive position of U.S. companies operating abroad,” he said.

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