Major U.S. home builders are urging President Barack Obama and House Speaker John Boehner to avoid the fiscal cliff even if it means adjusting tax rates, the Wall Street Journal reported. In a letter addressed to the two elected officials, CEOs of such companies as Toll Brothers and Hovnanian Enterprises voiced concerns that allowing the steep package of budget cuts and tax increases to take effect could shove the country back into a recession.
“We support a comprehensive agreement in Washington to avoid the fiscal cliff that includes revenue increases (including tax rate adjustments) together with meaningful entitlement reforms,” the letter reads. “We believe that taking ‘no action’ or failing to reach an agreement will shake the confidence of American consumers and businesses alike, and may derail the beginning of economic recovery.”
Home builders tend to lean Republican – a party not known for embracing tax hikes, the Journal noted. The letter did not mention the mortgage-interest deduction, the newspaper said. [WSJ] — Zachary Kussin