The following is a joint statement submitted by chief executive officers of more than 80 U.S. corporations to members of Congress concerning the federal deficit and impending tax increases.
“Policy makers should acknowledge that our growing debt is a serious threat to the economic well-being and security of the United States.
It is urgent and essential that we put in place a plan to fix America’s debt. An effective plan must stabilize the debt as a share of the economy, and put it on a downward path.
This plan should be enacted now, but implemented gradually to protect the fragile economic recovery and to give Americans time to prepare for the changes in the federal budget.
In order to develop a fiscal plan that can succeed both financially and politically, it must be bipartisan and reforms to all areas of the budget should be included.
The plan should:
Reform Medicare and Medicaid, improve efficiency in the overall health care system and limit future cost growth;
Strengthen Social Security, so that it is solvent and will be there for future beneficiaries; and
Include comprehensive and pro-growth tax reform, which broadens the base, lowers rates, raises revenues and reduces the deficit.
The recommendations of the bipartisan Simpson-Bowles Commission, which saved $4 trillion and addressed all parts of the budget, provide an effective framework for such a plan.
The plan should be conducive to long-term economic growth, protect the vulnerable, include credible enforcement mechanisms to ensure that debt reduction is achieved and leave the next generation better.”
The above statement was first published in The Wall Street Journal Oct. 25.