By Brendan Sasso - 11/13/12 04:30 PM EST
"Failure to act will undermine our economy and make the challenge of restoring growth and fiscal sustainability that much more difficult," they wrote.
The CEOs said policymakers should reform taxes strategically and on a permanent basis. They said the Simpson-Bowles Debt Commission proposal to lower corporate taxes and switching to a territorial tax system offers the "proper formula."
Many technology companies sell computers and software to federal agencies, so cuts to information technology (IT) budgets would hit them especially hard. Federal research spending has also led to innovations and new products for the technology sector.
"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," the CEOs argued, saying any cuts should be "strategic" rather than "across-the-board."
A separate white paper released on Tuesday by CompTIA, the trade association for the IT industry, found that the fiscal cliff would cause "major trauma" to IT companies.
"As Congress returns to wrap up unfinished business, I urge them to consider the impact of tax and federal policies on the domestic IT sector, which employs more than two million workers and contributes $110 billion to workers’ payrolls," Todd Thibodeaux, president of CompTIA, said in a statement.