News Column

US Needs Tax Hike, Spending Cuts to Curb Deficit: CEOs

Oct. 29, 2012

More than 80 CEOs and executives of big-name U.S. firms including General Electric and Boeing on Thursday urged U.S. policymakers to embrace a comprehensive deficit reduction approach including tax increase and spending cuts.

In a joint statement released on the Wall Street Journal, these corporate leaders stressed that any deficit reduction plan that can succeed "both financially and politically" has to limit the growth of healthcare spending, make Social Security solvent and include pro-growth tax reforms.

The tax reforms should aim at broadening the tax base, lowering the rates and raising government revenues, noted the statement.

Democrats and Republicans locked horns over how to reduce the nation's mounting deficit hovering at 16 trillion U.S. dollars in the election year.

Analysts were watching closely whether U.S. Congress would be able to lessen the impact of 560 billion dollars in tax increases and spending cuts, or sequester, set to take effect starting next year, a scenario dubbed as the "fiscal cliff."

Source: Copyright Xinhua News Agency - CEIS 2012

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