Fiscal Cliff
On January 1, 2013, the United States Senate passed an agreement to avoid the so-called “fiscal cliff” scenario by a vote of 89-8. The agreement includes $620 billion in staggering tax hikes but only $14 billion in spending cuts—though some of these meager cuts remain unspecified. This equates to a 44:1 ratio of tax hikes to spending cuts. The Congressional Budget Office (CBO) estimates that the package actually contains $330 billion in new spending, which derives from extending unemployment benefits and enacting new refundable tax credits.
Further, only $2 billion of the aforementioned spending cuts are scheduled to take effect in 2013. Overall, CBO estimates that the package deepens the deficit by $4 trillion over the next decade.
I voted against and do not support this agreement. Our economy needs spending restraint by the federal government and fundamental tax reform that eliminates corporate welfare and lowers individuals' rates. Instead, this package raises taxes, increases spending, and will lead to more borrowing. This deal is certainly no cure-all; rather, it falls far short of the measures necessary to promote job creation, economic growth, and fiscal stability.
