In two separate advertising campaigns, American chief executives
are seeking to influence Washington as a battle gets under way on
how to address the U.S. budget deficit.
As Democratic and Republican leaders stake out their positions in
the coming fiscal showdown in Washington, corporate executives are
starting a political campaign of their own.
The chief executives taking part in two separate advertising
campaigns that were set to begin Monday and Tuesday are walking a
delicate balance. They plan to press Congress to act quickly, even
as they publicly steer clear of the political firefight surrounding
the details of any far-reaching deal to cut the U.S. budget deficit.
Behind the scenes, however, the effort by business leaders could
play a crucial role in shaping decisions on U.S. tax policy,
including whether corporate tax rates go down even as individuals
pay more. By framing the issue as an attempt to balance the U.S.
government's budget, the plan also offers some political cover to
congressional Republicans who fear that voting for a tax increase
could make them the targets of powerful fiscal conservatives.
But a question remains over just how far the business groups will
go. In the past, corporations have joined the call for fiscal
responsibility, only to resist giving up specific perquisites and
programs that benefit their businesses or offering other suggestions
for deficit reduction.
The Campaign to Fix the Debt, a new group with a $40 million
budget whose backers include Jeffrey R. Immelt of General Electric
and David M. Cote of Honeywell, will run more than a million
dollars' worth of advertisements. The spots take their cue from
campaigns by companies like Nike and Dunkin' Donuts and feature
slogans like "Just Fix It" and "Time to Fix the Debt."
Mr. Immelt and Mr. Cote also feature prominently in a more
traditional campaign by the Business Roundtable, which represents
Fortune 500 companies and is one of the most powerful lobbying
groups in Washington.
The Business Roundtable effort, set to begin Tuesday, has a
budget of close to half a million dollars and is focused on the news
media in the Washington area, including outlets like Politico and
conservative talk radio shows.
"America's C.E.O.'s have a message for Washington: Don't take our
country over the fiscal cliff," warns a Business Roundtable
commercial, referring to the package of tax increases and automatic
spending cuts set to go into effect in January if Congress and
President Barack Obama cannot agree on a deficit reduction plan.
Experts say that combination would amount to a half-trillion-
dollar blow to the economy that could cause a recession in the first
half of 2013 -- a threat the Business Roundtable has made the
centerpiece of its campaign. "If Congress does not act, growth will
stall, jobs will be lost and our nation's credit will be harmed,"
the radio ad says.
The debut of the advertisements in Washington coincides with the
return to work of Congress on Tuesday to take up various issues,
including deficit reduction.
John Engler, the president of the Business Roundtable and a
former Republican governor from Michigan, said that whatever
solution emerged, "the tax code changes have to be permanent, and
the budget cuts have to be real."
"Even the president has said the corporate tax rate is too high
