Avoiding the Fiscal Cliff
Posted by Whitney Thompson on November 30, 2012
House Republicans understand the fiscal cliff must be averted, and have proposed a bipartisan framework that would accomplish this through significant spending cuts and tax reform with lower rates, consistent with the ‘balanced’ approach President Obama has said he wants.  

Democrats in Congress have downplayed the danger of going over the cliff, and continue to rule out sensible spending cuts that must be part of any significant agreement to reduce the deficit. Even if a deal is reached, specific areas of the tax code may still lapse and effect investors.  Most investment income will also be subject to a 3.8 percent charge to help pay for President Obama’s health care law that will automatically take effect on January 1, 2013.

2013 should be the year we begin to solve our nation's debt problem through tax reform and entitlement reform.  Both parties should work together now to avert the fiscal cliff together in a manner that ensures this happens.  Such reforms are essential to achieving economic growth, without which our nation’s debt problem cannot be solved.  

House Republicans have done the hard work to put forward a balanced approach that raises revenue and cuts spending.  I continue to believe that tax increases of any kind are not good for Americans and detrimental to our broader economy.  Families are hurting right now and asking them to contribute more to Washington’s spending problem is not a reasonable solution.  There are other ways to raise revenue without raising taxes, including closing tax loopholes and capping deductions that, along with cuts to entitlements, will put our country back on the path to fiscal responsibility. This sensible approach to our nations’ debt problem has been proposed to President Obama.

What do you think? How can we avoid the fiscal cliff while cutting spending and reducing the deficit? Please submit your comments below.
Comments
The opinions expressed below are those of their respective authors and do not necessarily represent those of this office.
  • Cathy J Shufelt from Flower Mound commented on 11/30/2012
    I'm not so sure the fiscal cliff can be avoided with the current administration. And quite frankly, I would rather go over that cliff than to bow down and fully yield to everything this president is demanding. It doesn't take a genius to understand that we can't spend our way back to a prosperous economy. We must have spending cuts: I believe a cut of $2 for every $1 of tax increase would be a good start. Everything should be on the table, without exception. Programs that give financial support to governments that are not friendly to the US or continue to pursue agendas that are counter to our best interests need to be overhauled or scrapped, starting with the United Nations. We also need to find ways to eliminate the waste and fraud in the national budget. Get rid of agencies that have duplicate funtions. Eliminate government handouts to non citizens-if they don't pay into the system, they should not expect anything from the system. Social security needs to be reformed. The retirement age should be bumped up again. People are living longer. And this includes the minimum retirement age. A means test for receiving social security and medicare should be established. In my household, I have to either earn more or reduce my spending to balance my budget. I don't rely on a credit card to fill the gap. I cut spending. Washington needs to do the same.
  • Amy S from Lewisville commented on 11/30/2012
    The Federal Government has a serious spending problem, as we all know. Cutting spending should be first and foremost, and I mean deep cuts with nothing off the table. Next we need to raise more revenue by closing all tax loopholes. Also, we need to reform social programs. If the President wants to add $50 billion in stimulus spending, I say no way. To cut spending in one spot but then increase it in another makes no sense whatsoever. Just say no. We can go off the cliff and it will hurt but if that is the only way to get the cuts we need then so be it.
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