Unlikely corporate backers in battle over US taxes

Before Tuesday’s about-face, the Business Roundtable had insisted that the White House extend Bush-era tax cuts to taxpayers of all income brackets, but the executives’ resistance crumbled as pressure builds to find a compromise for the fiscal impasse in Washington before the end of the year.

“We recognise that part of the solution has to be tax increases,” David M Cote, chief executive of Honeywell, said on a conference call with reporters. “That’s the only thing that allows a reasonable compromise to be reached.”

Even as the Fortune 500 leaders announced their shift, the White House continued to work behind the scenes to woo some of Wall Street’s most powerful financiers — a group that had largely abandoned US President Barack Obama in his bid for a second term after supporting him in 2008.

After seeking out corporate leaders from industrial companies last month, the White House has intensified outreach to Wall Street in December.

Several hedge fund managers, including Daniel Och, the billionaire founder of Och-Ziff Capital Management, will meet with Valerie Jarrett, a top Obama adviser, and members of the White House economic team on Wednesday.

Last Monday, White House officials sat down with a more than half a dozen top bankers and financiers, including Gary D Cohn, president of Goldman Sachs, and Greg Fleming, head of wealth management at

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