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CEOs Support Higher Taxes and Debt Solution

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Campaign to Fix the Debt

By Children’s Home Society of Florida Foundation

The nonpartisan Committee for a Responsible Federal Budget in cooperation with former Sen. Alan Simpson and former White House Chief of Staff Erskine Bowles has created a “Campaign to Fix the Debt.”

Bowles and Simpson were co-chairs of the National Commission on Fiscal Responsibility and Reform. They proposed a bipartisan budget solution at the request of President Barack Obama.

The CEOs Gather

On October 25, over 100 CEOs gathered at the New York Stock Exchange to support a comprehensive budget solution similar to that proposed by the Bowles-Simpson Commission. One of the commission members was Honeywell Chairman and CEO David Cote. He stated, “The U.S. has an opportunity to not only fix our debt issue and have an economic recovery, but we can also be a model for the world and how to deal with debt. What it really comes down to is if we still have the political will to be a great country.”

Cote continued to emphasize that it is important to develop a comprehensive solution. This solution will include “higher revenue, reduced entitlement spending, reduced discretionary spending, and investment in infrastructure and math and science.”

Congressional Leaders

Congressional leaders from both parties responded to this public proclamation by leaders of many of America’s largest corporations. The Senate Democratic leadership indicated that it believes part of the solution involves tax increases on individuals with higher incomes. House Republican leaders continue to oppose these tax increases.

Sen. Bernie Sanders (I-VT) observed that it is important for corporate leaders to pay their “fair share” of taxes. He commented, “Our Wall Street friends might also want to show some courage of their own by suggesting that the wealthiest people in this country, like them, start paying their fair share of taxes.” Sanders noted that many large corporations use various tax provisions to reduce their taxes. In his view, this tax reduction has been a factor in the major deficit problems.

Assessment

Maya MacGuineas, Chair of the Committee for a Responsible Federal Budget, supported this bipartisan effort by the 100 CEOs. She stated, “The collective voice of these business leaders has helped shine a light on the fact that the debt is already affecting Americans where they work and live. We have listened to the CEO Council and heard the consequences of inaction – businesses aren’t investing in an uncertain economy and are slowing job growth to protect their employees. With the CEOs’ backing and the support of the over 280,000 person Grassroots Network, we believe we can successfully push for a comprehensive debt reduction deal.”

Editor’s Note: It is unusual for a bipartisan group of business leaders to be so public in support of both a budget solution and higher taxes. This willingness to place both spending and tax increases on the table is significant.

Conclusion

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One Response

  1. The debt limit

    Let’s see! The USA will reach its’ debt ceiling of $16.4 trillion dollars next month.
    Can you say … default?

    Dr. Schwinger

    Like

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