By Saabira Chaudhuri
The Technology CEO Council has urged the Obama administration
and Congress to pass legislation that prevents the so-called fiscal
cliff.
In a letter, nine chief executives from companies including Dell
Inc. (DELL), International Business Machines Corp. (IBM) and Intel
Corp. (INTC), asked Congress and the administration to "work
together and pass concrete legislation that forestalls much of the
across-the-board spending cuts and immediate tax increases" and
"implements a pro-growth framework for long-term fiscal
sustainability."
The CEOs said the country faces "one of the most avoidable
economic crises in U.S. history," noting that increasing taxes by
more than $400 billion and cutting spending by more than $100
billion effective the beginning of next year "will most likely
reduce economic growth and hinder employment in the United States
and globally."
The council said spending cuts should be strategic, avoiding
areas like education, infrastructure and research that spur
long-term growth, and that business taxes should align with the
principles of lower rates, a broader base and territorial treatment
of international income.
"Failure to act will undermine our economy and make the
challenge of restoring growth and fiscal sustainability that much
more difficult," said the council. "Employers are already making
plans for 2013 hiring and investment, and they cannot assume that
the gridlock will end and Washington will suddenly start working
again next year."
Write to Saabira Chaudhuri at saabira.chaudhuri@dowjones.com
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