January 17, 2003

The President
The White House
Washington, DC 20500

Dear Mr. President:

On behalf of the CEO-members of the American Business Conference (ABC) we write to congratulate you on your recently announced growth and jobs plan.

Given the sluggishness in some sectors of the economy, we believe there is merit in implementing sooner rather than later the tax reductions that were enacted on a bipartisan basis in 2001. Providing 92 million Americans with an average tax cut of $1,083 in 2003, which this accelerated phase-in would accomplish, will impart a welcome economic boost.

We were especially heartened by your bold proposal to eliminate the double-tax on dividends. Since its inception, the American Business Conference has called for an end to the unequal treatment of debt and equity financing. Your proposal would do this, thereby lowering the aggregate cost of equity capital. Growth firms, as you know, typically must rely on equity financing because their most important assets - ideas - are unfortunately not usually recognized as solid collateral for borrowing. And yet, ideas are what will drive economic growth and capital formation in the future.

Mr. President, it has long been clear to us that substantive tax reform would be impossible without firm Presidential leadership. You have now provided that leadership. We thank you for your courage and look forward to working with you in promoting a better understanding and eventual enactment of your plan.

Sincerely,

/s/   Alfred P. West, Jr., Chairman & CEO, SEI Investment Company, Oaks, PA and Chairman of American Business Conference
    and John Endean, President of American Business Conference

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For more information about membership in American Business Conference or about our advocacy, contact Andre Thomas or email: abc@americanbusinessconference.org

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