CEOs back Obama's tax increase plan to help lower deficit

The Globe and Mail
Oct. 25, 2012

A coalition of corporate chieftains has delivered a tacit endorsement of President Barack Obama’s call for tax increases to fix the deficit, repudiating Republican nominee Mitt Romney’s assertion that the U.S. fiscal mess can be solved without new revenues.

The group, consisting of the heads of more than 80 major corporations, includes well-known Democrats and Republicans. And the timing of its intervention underscores rising anxiety in corporate America over the failure of Congress to reach a comprehensive deal to slow the growth of the $16-trillion (U.S.) federal debt...

If Republicans have stonewalled on tax increases, Democrats in Congress have refused to consider cuts to entitlement programs such as Medicare, the government-run health plan for seniors. But the CEOs argue that the cost structure of both Medicare and Medicaid, which covers health costs for the poorest Americans, needs to be reined in.

“We think that having these CEOs come out is useful, especially if they go back home and tell their employees what is at stake,” Steve Bell, senior director of economic policy at the Washington-based Bipartisan Policy Center, said in an interview.