Corporate America Sweats As U.S. Nears Fiscal Cliff

Top U.S. executives have less confidence in the business outlook now than in the past three years - and a key reason is fear or gridlock in Washington over the fiscal deficit and tax policy. The uncertainty coupled with slowing demand in Asia and Europe, is forcing corporate leaders to postpone decisions on major investments and hiring, and hurting sales of everything from textbooks to telephone lines. Some 34 percent of U.S. CEOs plan to cut jobs in the United States over the next six months, up from 20 percent a quarter ago, according to a Business Roundtable survey releassed last week. Only 30 percent plan to raise capital spending compared to 43 percent previously. The main culprit is the fiscal cliff - Washington's self imposed year-end deadline to agree on a plan to shrink the federal budget or trigger $600 billion in spending cuts and higher taxes that were put in place last summer.