Technology CEOs Urge Action on Fiscal Cliff, Tax Reform

On behalf of some of our nation's leading employers and innovators, we write to urge Congress and the Administration to work together and pass concrete legislation that (1) forestalls much of the across-the-board spending cuts and immediate tax increases often called the "fiscal cliff" and (2) implements a pro-growth framework for long-term fiscal sustainability.

Today we face one of the most avoidable economic crises in U.S. history. As you know, effective January 1, taxes will increase by more than $400 billion while spending is cut by over $100 billion. Experts agree such immediate changes will most likely reduce economic growth and hinder employment in the United States and globally. This would be particularly damaging as economies throughout the world struggle and look to us for leadership. Such an outcome will certainly harm American workers and families.

We are concerned that many policymakers believe inaction is acceptable. We strongly disagree, as we explained to leaders in both parties in meetings throughout 2012 and again this October. Failure to act will undermine our economy and make the challenge of restoring growth and fiscal sustainability that much more difficult. 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. Our experience in business has taught us that progress is only made through compromise.

You laid the groundwork for such compromise by empanelling the Fiscal Reform Commission in 2011. That Commission provided the key principles for long-term, pro-growth reform:

• Spending cuts should be strategic, rather than across-the-board. Investments in education, infrastructure and research have proven track records of spurring long-term growth. Additionally, modern business practices can help make government operations more efficient.

• Taxes should be reformed strategically and on a permanent basis, with the over-arching goal of promoting the competitiveness of American workers and employers. With respect to business taxes, Alan Simpson and Erskine Bowles offered the proper formula, recommending lower rates, a broader base and territorial treatment of international income.