Lobbying Produces Results for Business

The U.S. Chamber helped push through Congress a $168 billion economic stimulus package designed to spark small business growth and revive a struggling economy.

The Chamber was instrumental in the stimulus package negotiations from the start, insisting to the administration and congressional leaders that expensing and deduction provisions for businesses are essential to boosting the sluggish economy. "Increased business investment is critical to an economic recovery, and this bill creates strong investment incentives," says Bruce Josten, Chamber executive vice president, Government Affairs. Chamber staff made nearly 3,000 phone calls and sent more than 260,000 e-mails urging people to contact their senators and asking them to pass a stimulus package.

The package includes $51 billion in benefits aimed at businesses. Specifically, it would allow American businesses that buy new equipment this year to deduct 50% of the cost of their investment in 2008. The remaining value of the investments would be depreciated over the life of the item beginning that year. The agreement also nearly doubles to $250,000 the Section 179 expensing limits for small businesses.

The Chamber also applauded provisions to spur consumer spending. Workers earning $75,000 or less will receive up to a $600 tax rebate. Married couples earning $150,000 or less will receive up to $1,200. Anyone qualifying for a check would receive an additional $300 for each child. Seniors, veterans with disabilities, and workers who paid little or no income tax in 2007 are also eligible for rebates. "These rebates will put money in workers' pockets, stimulating consumption and mitigating the effects of the slowing economy," Josten adds.

The Chamber welcomed provisions to increase the size of mortgage loans that can be insured by the Federal Housing Administration and purchased by Fannie Mae and Freddie Mac. "These increases not only improve liquidity in the mortgage marketplace, but they also boost homebuyers' confidence, resulting in increased sales and economic activity," says Josten.

The Chamber successfully lobbied to keep out of the final bill provisions that would have increased government spending without directly stimulating the economy. It also strongly opposed any offsetting tax increases to cover the cost of the bonus depreciation and increased expensing.

Representatives of 30 Chamber-member small businesses attended the bill signing ceremony at the White House on February 13 in recognition of the Chamber's grassroots lobbying efforts.

Chamber President and CEO Tom Donohue and Josten first outlined what the Chamber would seek in a stimulus package during the Chamber's State of American Business event on January 8. Two weeks later, Treasury Secretary Henry Paulson echoed those same themes during a speech at the U.S. Chamber, saying that a stimulus package "must be swift, robust, broad-based, and temporary," and "large enough to have a real impact on our economy and bolster consumer spending and business investment this year."