Chief executives of more than 80 major U.S. corporations, ranging from Boeing to Caterpillar and JP Morgan, urged Congress to cut the federal deficit with tax reform and spending cuts, according to The Wall Street Journal report on Thursday.
In an open letter to be released later Thursday, the CEOs said any fiscal plan "that can succeed both financially and politically" has to limit the growth of health-care spending, make Social Security solvent and "include comprehensive and pro-growth tax reform, which broadens the base, lowers rates, raises revenues and reduces the deficit."
The executives who signed the declaration believed tax increases are inevitable no matter which political party wins the White House in the November elections, according to The Journal.
If Congress fails to reach an agreement on reducing deficit by the end of this year, it will automatically trigger big spending cuts and tax increases in 2013, a situation that is called "fiscal cliff".
Executives including JP Morgan CEO Jamie Dimon had warned repeatedly of "fiscal cliff's" big negative impacts on the still-recovering U.S. economy and business.
The CEO's statement was organized by campaign called "Fix the Debt," which is urging Washington to set aside partisan differences to put the U.S. on a sustainable fiscal path. Well-known executives such as Microsoft Corp. CEO Steve Ballmer, Goldman Sachs Group Inc. CEO Lloyd Blankfein and General Electric Co. CEO Jeffrey Immelt all signed in the declaration.
The CEOs didn't endorse either presidential candidate's economic plan, cut said the recommendations of the bipartisan Simpson-Bowles Commission provides an "effective framework" for a fiscal plan.
Simpson-Bowles calls for reducing tax rates for all income groups as well as slashing many popular tax deductions and adding them back selectively.