US chemical firms, others welcome stimulus deal

24 January 2008 23:51  [Source: ICIS news]

WASHINGTON (ICIS news)--US chemical industry officials on Thursday joined broad business interests in welcoming the economic stimulus package announced earlier today, saying the bipartisan plan will revive the nation’s economy.

 

The US Chamber of Commerce said broad terms of an economy-boosting plan reached among House Democrats and Republicans and the White House “will spur business investment, consumer spending [and] increase productivity and put the US economy back on track for long-term growth”.

 

The plan announced earlier on Thursday will inject about $150bn (€102bn) into the $13,000bn US economy through a variety of personal and business tax rebates, credits and deductions.

 

Under the plan, about 150m US families will receive benefits, with married couples eligible for $1,200 in tax rebates and single taxpayers entitled to as much as $600 in tax refunds.

 

About $100bn of the stimulus cash flow will go to individuals with the $50bn balance directed to businesses in the form of accelerated tax deductions and credits for purchases this year of facilities or equipment.

 

“The proposal put forward today is a simple, targeted economic stimulus that will quickly put money into consumers’ pockets where it can boost economic growth by creating demand throughout all sectors of the economy,” said Steve Pfister, vice president at the National Retail Federation.

 

The American Chemistry Council (ACC) applauded the bipartisan cooperation between Congress and the White House, saying the stimulus package “will ensure that our industry and the millions of Americans who depend on chemistry take actions to address the economic challenge”.

 

The US chemicals industry has been affected by the country’s economic downturn, specifically by the year-long decline in new home construction, a key consuming sector for chemicals and chemical-related products.

 

The ACC also urged Congress to act quickly to renew and expand the federal research and development (R&D) tax credit, which expired at the end of 2007.

 

“The R&D credit encourages hiring and retaining individuals engaged in development of technology, with such jobs spanning laboratory work, systems development and skilled and unskilled labour in support of research - jobs that are essential if American chemistry is to fulfil its role as America’s highest technology industry,” the council said.

 

US Chamber President Tom Donohue said that “this stimulus plan will boost consumer confidence and help millions of struggling small businesses and unemployed workers”.

 

($1.00 = €.68)

By: Joe Kamalick
+1 713 525 2653

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