The Impact of BRT


How BRT members create jobs and community investment around the nation

35M+

total employment

16M+

employed directly by BRT members

319M+

employed by BRT member suppliers

$6B+

in charitable contributions

$440B+

in revenue generated for small and medium sized businesses

$130B+

in charitable contributions

BRT Impact by State & District

Solving the DACA Challenge

Business Roundtable, whose members employ Dreamers in communities across the nation, strongly urge leaders in Washington to enact a legislative solution before this deadline expires.


Congress and the White House face a very real deadline to determine the fate of Deferred Action for Childhood Arrivals (DACA) recipients — the young Dreamers who came to America as children and have called the USA home as long as they can remember.


Dreamers grew up in American schools, share American values and are pursuing the American Dream. Despite this history, these young people now face the prospect of losing their legal status and being deported.

For the CEOs of Business Roundtable, the Dreamers are far more than a legislative priority. They are employees, friends, and colleagues — part of the teams that allow our companies to compete on a global basis and create jobs for Americans. Resolving this issue in a way that reflects American values should be one of the top priorities of this new year.


Immigrants have always made a powerful contribution to the America that we built together, from courageous service in the Revolutionary War to their role in building the Internet economy.


This generation is no exception. Dreamers are hard-working students, employees and military servicemen and women who are just starting to do much for this great country of ours.


A solution for Dreamers cannot wait — and it is a great place to start in tackling the other immigration issues that matter to our businesses and our country.

Infrastructure

With regulatory reform moving forward and tax reform enacted, the next key issue to tackle to achieve sustained economic growth is infrastructure investment; Congress and the Administration should make this the next legislative priority.


Our nation’s crumbling, aging infrastructure is now the greatest impediment to maximizing economic growth and prosperity.


Each American could save $3,400 a year by improving our infrastructure; we lose more than $9 a day idling in traffic, paying more for groceries, sitting out power outages or cursing flight delays.


84 percent of Americans support infrastructure investment, according to a recent Harvard-Harris poll.

There are three immediate measures Congress can take that would significantly free up public and private capital for infrastructure.


We must protect and reinforce federal trust funds that support highways, inland waterways and ports – the heart and main arteries for American commerce.

The Highway Trust Fund, the Inland Waterway Fund, and the Harbor Maintenance Fund all struggle with significant issues, ranging from solvency to being tapped for other purposes.

The Highway Trust Fund, a key federal source for transportation funding, spends about $16 billion more than it collects annually and will go bankrupt – again – in 2020.

We need long-term, consistent revenue streams that will provide the support these funds need to renew America’s infrastructure.


We must expedite regulatory reforms and permitting approval processes to speed up project completion, which will reduce project costs and facilitate financing.

Business leaders and labor leaders agree that improving the federal permitting process will help unlock investment, leading to economic growth and job creation. This can be done by making sure government agencies work together to quickly determine whether a proposed project meets environmental, safety, and other standards.

President Trump signed an executive order in 2017 to do exactly that, but much of it still remains to be implemented.

The order sets a goal of getting a clear decision – up or down – on a proposed project within two years. Today, for example, just completing an Environmental Impact Statement for a significant highway project takes seven years on average.

(Sources: Government Accountability Office)


Congress can incentivize private investment in infrastructure.

Private investment can be used to supplement tax dollars and provide a larger pool of capital to deliver a broad spectrum of infrastructure projects.

Public-private partnerships, or P3s, empower public officials to manage projects with greater control.

Since 2010, private investment has facilitated over $36 billion in U.S. transportation infrastructure projects.

Improving the Regulatory Process

Regulations have been imposing ever-increasing cumulative costs, coming in as the top cost driver for five consecutive years (2012-2016), according to the Business Roundtable CEO Economic Outlook Survey.


The Trump Administration has set a markedly different tone by:

Achieving a 22:1 ratio of deregulatory to regulatory actions in FY2017 (67 deregulatory actions vs. 3 regulatory actions), generating net regulatory savings of $8.1 billion. (as of Dec 14th)

(Source: Office of Information and Regulatory Affairs)

Withdrawing or delaying a total of 1,579 regulatory actions that were listed the Obama Administration’s Fall 2016 Regulatory Agenda. This includes 635 regulatory actions withdrawn, 244 regulatory actions made inactive, and 700 regulatory actions added to the Long-Term Actions list. (as of Dec 14th)

(Source: Office of Information and Regulatory Affairs)

Projecting a 3:1 ratio of deregulatory to regulatory actions in FY2018, for an expected net reduction of almost $10 billion in regulatory costs. (as of Dec 14th)

(Source: Office of Information and Regulatory Affairs)

The early indications of these changes are positive. According to the Q4 2017 CEO Economic Outlook Survey, regulation moved down to the second-greatest cost pressure for the first time since 2011.Furthermore, businesses large and small are more confident than they’ve been in years, while consumer confidence is at its highest point since 2000.

(Sources: Business Roundtable; National Federation of Independent Business; The Conference Board)


It’s not any single regulatory change that makes the difference, but rather the direction of reducing excessive regulation. Business leaders no longer have to anticipate the next regulatory hammer that’s going to hit their industry or company.


Despite these positive signs, a variety of regulatory process reforms could further improve the efficiency and transparency of federal rulemaking. While Business Roundtable continues to support legislative action to improve the regulatory process (e.g., the Regulatory Accountability Act), some reforms could also be implemented by executive action.

Business Roundtable Recommendations

1

The government should objectively analyze the costs and benefits of proposed and final major rules from all agencies, including independent regulatory commissions.

2

Agencies should engage stakeholders early in the regulatory process and publicly disclose information about planned regulatory actions on a monthly basis.

3

Every major rule should include a plan for how the agency will evaluate its effectiveness after an adequate period of time.

4

More rigorous standards should be set and enforced for guidance documents.

5

Congress should consider other changes to the Administrative Procedure Act, particularly relating to greater judicial scrutiny of agency decisions.

By the Numbers

Since the enactment of tax reform, Business Roundtable member companies have announced:

Larger compensation or benefits for over 2.1 million employees

At least $1.95 billion in cash and stock bonuses, benefitting over 1.1 million employees

$7.3 billion in contributions to their workers’ pension funds for 2018 along with expanded 401(k) retirement benefits, increased medical and family leave benefits, and higher levels of profit-sharing for employees

The creation of tens of thousands of new American jobs and more investments in workforce training

$1.4 billion in charitable donations

Over $83 billion in capital expenditure plans over the next five years

Tax Reform Delivers

American workers, families and communities are already seeing the benefits of tax reform.


Congress took a historic step in 2017 to reform America’s broken and outdated tax code. The U.S. has gone from an anti-competitive tax system that was pushing companies and investment overseas to one that will attract jobs and investment here in the United States.


The bill delivered on the two basic principles that mattered most to economic growth: a competitive tax rate and a competitive international system that put the U.S. in line with other G-7 countries.


The most effective pieces of this new law will be the lower rates for businesses, the ability for firms to repatriate future foreign earnings without a tax penalty, and allowing firms to write off investments completely in the year made – all of which will be a powerful incentive to invest in America.


The U.S. has gone from having the highest corporate tax rate in the OECD to a rate closer to the average of other OECD countries.

Tax reform will help middle class workers.


The U.S. Treasury Department estimates that 90 percent of wage earners will see an increase in their take-home pay.


Independent estimates show an average tax savings of $1,600 per family in 2018. Americans will start seeing these tax savings in their paychecks by February, when employers adjust withholding.


This will put an average of more than $100 a month back in people’s pockets, and that’s before the effect of any of the raises or increases in benefits that we’ve already heard companies announce.

Trade Agreements Must Be Modernized, Not Weakened

On the benefits of trade to American businesses and workers:


Trade is a pillar of United States economic policy that promotes growth and job creation

Strengthening existing trade agreements and prioritizing new ones will deliver economic growth to the benefit of job creators, workers and American families. By increasing access to foreign markets and driving the development of global supply chains, trade helps create American jobs.


Strengthening trade deals supports President Trump's goal of achieving sustained three percent economic growth.

Withdrawing from trade agreements would sacrifice the economic progress gained through tax reform and regulatory optimization. Trade drives American prosperity. Our businesses can reach the 95 percent of the world's population that lives outside the United States through trade, and our consumers have access to the highest quality products at the lowest prices. And our economy becomes more productive, leading to higher wages and greater opportunities.


Trade agreements play an important role in bolstering America's role as a global leader.

American withdrawal from trade agreements means ceding ground and influence to economic competitors like China, European nations and Russia.

When the United States walks away from trade, the rest of the world moves on without us. The eleven other Trans Pacific Partnership countries are now pursuing 27 separate free trade agreements, all without the United States.


NAFTA is just one of the many U.S. free trade agreements that supports America's economic and national security goals.

The United States-South Korea Free Trade Agreement (KORUS) is another trade agreement that is important not only for the U.S. economy, but for American strategic and national security interests in Asia during a time of uncertainty.

On the importance of NAFTA:


Trade agreements, like the North American Free Trade Agreement (NAFTA), are proven to deliver economic growth that benefits job creators and American families.

The United States exported $604 billion in goods and services to NAFTA partners in 2015.


Withdrawal from NAFTA would jeopardize millions of American jobs across every sector of the economy and in every state, and would ultimately make the United States poorer.

Trade with Canada and Mexico supported increased by $375 billion, more than the next 11 largest American export markets combined.

Between 1993 and 2015, American goods exported to Canada and Mexico 12 million U.S. jobs in 2014.

The widespread pain and dislocation that withdrawal would cause is why businesses, farmers and workers are demanding a modern, updated trade deal, not withdrawal.

NAFTA benefits a range of U.S. industries, for instance:

A pie chart showing 76 percent

76%

76%

of United States vegetable and melon exports are sent to NAFTA partners.

A pie chart showing 74 percent

74%

74%

of United States motor vehicle parts exports are sent to NAFTA partners.

A pie chart showing 56 percent

56%

56%

of United States truck and rail freight and port services are sent to NAFTA partners.


Withdrawing or weakening NAFTA would stunt U.S. growth, jeopardize American jobs and competitiveness and cause overall pain to the American economy, undermining President Trump's economic goals to make American companies more globally competitive.

Withdrawal from NAFTA would cost the American economy over $50 billion in foregone output and income.

In the event of NAFTA withdrawal, United States household purchasing power would decrease by $654 per household due to higher prices on goods and lower wages.

Re-imposing tariffs eliminated by NAFTA would result in the loss of 1.8 million jobs, with most job loss occurring in lower-skilled occupations.

United States exports to Canada and Mexico would reduce by 17.4 percent to each country if the United States pulled out of NAFTA.

Without NAFTA, exports from American businesses and farmers could have faced up to $15.5 billion in tariffs on the $570 billion they exported to Canada And Mexico in 2015, or taxes averaging 3 percent.

Many crucial sectors of the U.S. economy would have faced more than $1 billion in tariffs on export from 2015 without NAFTA.

$3.8 Billion

Food Products

$3.6 Billion

Auto Exports

$1.1 Billion

Textiles and Apparel

$1.1 Billion

Chemicals Exports

The key objective of current and future NAFTA negotiations should focus on maintaining and modernizing the agreement to deliver more economic growth and benefits to job creators and American families.

Improving and modernizing NAFTA can include:


Eliminating remaining barriers to trade in goods and services as well as foreign localization policies.


Promoting e-commerce and digital trade.


Strengthening intellectual property protection and enforcement.


Helping small- and medium-sized businesses better tap Canadian and Mexican markets.

Withdrawal accomplishes none of these objectives.


Steel and Aluminum Tariffs Risk American Jobs and Economic Growth

While we appreciate President Trump’s focus on defending American businesses and workers, his tariffs will cause significant harm to industries that rely on imported steel and aluminum. Higher production costs will make American-made products more expensive and less competitive around the world.

These tariffs, if fully implemented, would lead to a net loss of 146,000 U.S. jobs.

Our nation’s trading partners can and will retaliate by imposing new tariffs on their own.

Using ‘national security’ as an excuse to unilaterally impose tariffs opens the door for other countries to do the same, allowing them to bypass long-established international trade rules to gain an unfair advantage over American businesses and workers.

These tariffs will do far more harm than good while making little profess to counteract global steel and aluminum overcapacity.