Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, May 7, 1993 TAG: 9305070163
SECTION: BUSINESS PAGE: A-5 EDITION: METRO
SOURCE: PHIL MURRAY STAFF WRITER
DATELINE: WILLIAMSBURG LENGTH: Short
That fear helped drag down the national economy during the first quarter. Making new taxes a reality could derail consumer spending completely, chief executives of major U.S. companies said at a news conference opening the spring meeting of the Business Council.
Although the U.S. economy grew at an annual rate of 1.8 percent in the first quarter, advisers to the council predicted more moderate growth rates of 2.9 percent this year and 3.2 percent in 1994.
The council of more than 100 executives was to hear from Hillary Rodham Clinton today on the administration's proposals for health-care reform. But they were in no mood to hear about more taxes.
The prospect of a value-added tax to pay for reform got a resounding thumbs down. "Higher taxes and higher health-care costs are in direct conflict with more jobs," said John F. Welch Jr., chairman and chief executive of General Electric Co.
Clinton's economic package, which had broad support when it was introduced, apparently has lost its luster with business leaders.
John W. Snow, chairman and chief executive of CSX Corp., said it puts too much emphasis on taxes and not enough on spending cuts.
"I think the business community would be prepared to support higher revenues through taxation if they thought there would be real, fundamental change in spending patterns," he said.
"Since the package was unveiled, nothing has happened except to pile on uncertainties," said Robert E. Allen, chairman and chief executive of AT&T.
by CNB