Little by little, the presidential candidates are tiptoeing into the realm of economic policy, edging ever closer to that political chasm called “specifics.”

Weighing in earlier this week was Senator Obama, who proposes to give 150 million working Americans a payroll tax credit of as much as $500, eliminate taxes altogether for senior citizens with income below $50,000, and allow a mortgage tax credit for those who do not itemize their taxes. The Illinois Democrat promises to pay for these outlays by closing corporate tax loopholes and by increasing taxes on the wealthy.

Some in the business community might be moved to describe such populist proposals as fiddling while Rome burns. Many think there are much bigger issues facing America, such as generating the income that the Democrats are so eager to redistribute. The executive vice president of the U.S Chamber of Commerce, Bruce Johnston, puts it this way: “For several decades, the United States stood alone as the engine of international growth and industrial revolution. We were so far ahead of everyone else that we could afford to muddle through the big problems. That’s not true anymore. The main concern of the business community is that the rest of the world is far more competitive today than it has ever been before.”

In a similar vein, the executive vice president of the Business Roundtable, Larry Burton, says his organization’s overall ambition is to “create a strong policy framework so that business can be globally competitive.” His group champions several legislative priorities, including ensuring that America has the skilled workers needed to fuel a growing economy, some control over energy and health care costs, and benign trade regulations.

A more expansive trade approach appears a top priority for the business community. “We have to stop backsliding on trade,” Mr. Johnston says. “In 1994, the United States had three free trade agreements in place; now we have 14, with four more pending. There are now over 300 free trade agreements worldwide — 119 have been signed in Asia alone since 2002. China has trade agreements with 28 countries, and the E.U. has agreements with 21 countries. One-half of world trade is now made through these agreements.”

The executive director of the Securities Industry and Financial Markets Association, Mark Lackritz, views the trade issue from a different angle. “Our organization is a strong advocate for global capital markets. Finance is not a zero sum game. Sophisticated capital markets lead to growth. If markets develop in Africa, it’s a win-win situation. Capital markets are the engine room of democratic capitalism. We need to knock down barriers to capital flows and increase the efficiency of cross-border transactions.”

Equally important, according to Mr. Lackritz, is a clearer and more efficient regulatory climate. “We need to take a hard look at financial services regulatory reform to make sure we are globally competitive and that we create an efficient and effective regulatory structure,” he says.

Burdensome regulations create obstacles to trade and also increase costs, reducing American competitiveness. Another increasing cost disadvantage borne by domestic companies is high taxes. Mr. Obama and other candidates may look to close business tax “loopholes,” but Mr. Burton notes that American corporate tax rates are now the second highest among OECD countries. Mr. Johnston echoes that concern: “We are in a tax cut competition globally, from the E.U. to Singapore. … If the tax cuts of 2001 and 2003 are allowed to expire in 2008 and 2012, it will amount to the largest single tax increase ever imposed by a factor of five,” he says. High taxes are not the only concern. According to an annual survey of Roundtable members, health care is the no. 1 driver of costs for corporations. That organization is pushing Congress to mandate technology improvements that could lower outlays and also to approve the State Child Health Insurance Program, which is currently being debated.

A nonpartisan organization, the Roundtable does not endorse candidates, but it applauds Senator Clinton and others who have put forward health care proposals. “It’s good that candidates are discussing and putting ideas on the table,” Mr. Burton says.

Roundtable members cite energy prices as the second driver of costs overall. The head of policy and government affairs at the National Association of Manufacturers, Aric Newhouse, puts updating and expanding domestic energy production at the top of his organization’s wish list for the incoming legislature in 2009.

Growing reliance on imported oil leaves America vulnerable to price shocks and supply disruptions, while high-cost energy penalizes domestic producers. Proposals include strengthening research and development in the sector, increasing domestic energy production from coal and nuclear, and expanding investment in alternative fuels.

Another concern for American business is the availability of skilled workers going forward. With 77 million baby boomers approaching retirement and only 56 million in the next generation available to fill the emptying slots, America may well be looking at a serious worker shortage. Add to that the dismaying shortcomings of the educational system in America and we may not have the skilled work force necessary to compete.

“With 30% of suburban kids not graduating from high school and more than 50% of city kids, we’ve got to get to work on our schools,” Mr. Johnston says. Mr. Burton applauds Congress for recently passing a bill aimed at increasing the resources dedicated to educating science and math students. The prospect of worker shortages also highlights the need for immigration reform, which the Chamber of Commerce and other business organizations champion. “We supported the reform bill on immigration,” Mr. Johnston says. He is disgusted at the bill’s defeat. “I have never heard such rhetoric,” he says, describing the vitriolic debate on the issue.

“We’re looking at a perfect storm scenario,” Mr. Johnston warns. “The huge swing in productivity which we saw in the 1990s is slowing, the boomers are beginning to retire, the entitlements programs are about to move into the red, our infrastructure demands are huge, and the longest expansion on record is 8 1/2 years. This one started in 2002. It would be exactly the wrong time to raise taxes.” Meanwhile, the candidates keep fiddling.