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.
  • Arthur P from Denton commented on 12/3/2012
    Republicans are trying to convince us that raising the top tax rate to Clinton levels - a whopping 3.6% above current - is going to doom our economy. What a crock!! Job creators?? My eye! Average consumers are the true job creators. When they've got good jobs and a decent wage, they've got money to spend. That creates DEMAND. Manufacturers have to create the SUPPLY to fulfill that demand, so they hire more workers, in turn creating more demand for more supply and more jobs. That is basic Supply and Demand economics. Trickle Down, supply side or Reaganomics. Doesn't matter what you call it, it doesn't work. It's a fantasy that the GOP has bought into. All it does is balloon the national debt because it doesn't create the revenue needed for the gov't to operate. Certainly not enough revenue to fund two long-term wars and an unfunded Medicare drug program after multiple unwise tax cuts - even tax cuts done AFTER we went to war! Right now, we don't have enough jobs for consumers to create demand as quickly as needed. Not borrowing money to spend on stimulating the economy when interest rates are so low - even with the House GOP-caused loss of our AAA credit rating - is insanity. The Republican bid to make Obama a 1-term President thru using Congressional obstructionism to sabotage our economic recovery has failed. He won the election. It's time to stop the garbage and deal in good faith with the Democrats. Do any of you on the right side of the aisle even remember how to do that?
  • Brad from Frisco commented on 12/4/2012
    It saddens me to see our leaders take extreme positions on both the left and right. I believe that the majority of Americans are somewhere in the middle. It is comical to see an aversion to the word "compromise" - instead, our leaders prefer "deal". I hope to live to see the day a politician is strong enough to compromise or even admit to changing their mind! As a person who would be affected by increased rates on the 2%, I am aware that I may have to make sacrifices to help our country. Whether it is a tax increase or loophole/deduction changes, I would only ask that it be accompanied by spending cuts. This my go against my preference and conservative beliefs, but it seems fair. I believe it is important to understand that if we don't have consensus, we might have to compromise in order to move forward. I suspect Americans would be understanding if our leaders could come together and present us with a grand compromise.
  • Steven from Fort Worth commented on 12/7/2012
    We shouldn't avoid the cliff. It forces exactly what this country needs most: fiscal responsibility in the form of increased revenue and reduced spending. A year from now, people will wonder why we didn't go this route deliberately.
  • Roland S from The Colony commented on 12/7/2012
    Our federal, state, county and city governments needs to accept their responsibility to spend their money wisely, just as every family has had to do when their primary source of income was decreased due to one’s unexpected unemployment – they take a hard look at what they have been accustomed to spending and take immediate actions to stop paying for non-essential stuff they do not need for their economic survival. The physical cliff syndrome could have been avoided if all government office budgets were laid out on the table, and the multitudes of non-survival stuff were immediately cut; not cut tomorrow or in the future, but immediately. Since our government has not seen fit to control its budget in this manner, the physical cliff will become the government’s unemployment benefit that will serve as a starting point to eliminate spending. Unfortunately, our government will not stop paying for the non-essential stuff that is not needed for our government s economic survival. Do this, and eliminate future physical cliff conditions.
  • First Name from City commented on 12/7/2012
    I have been republican for all of my life, but, do not understand this aversion to tax increases? I believe a combination of tax inceases and spending cuts is necessary to avert problems as seen in Europe where exessive gov. spending was the ruin of many of those coutries. The reduction of payroll taxes was one of the most ill concieved actions we have taken in the last years, taking money away from programs that need it. Most people didn't even realize they were getting this benefit. I prepared taxes for clients for some eight years and obsered extreme misuse of the tax credits issued by the government. Most abuse was in the child tax credit and earned income credit. It is time for our austerity programs, citizens have to realize that they need to pay for the privelage of being American. Glenn from Flower Mound
  • Jesse M from Keller commented on 12/7/2012
    Stop the hate! Find common ground. Pass the tax for the middle class now, it's something both parties agree with. To hold the middle class hostage to avoid the tax cut for the 2% is insane! It disrespects the will of the majority that elected the president. It's time to work with the President! Entitlement programs like medicare, military spending (yes entitlement out of control, agree with Ron Paul) will need modification. I am tired of party politics, it's time to come together for the best interest of all of America. The House of Representative Leader is insulting! He is disrespectful to the American people and a legend in his own mind. I am in agreement with the President. He better do what he was elected to do. American business need certainty to start hiring people again. Take care of the people's business, not the Democrats or Republican business. One nation under God ... Not one nation divided by political party.
  • First Name from City commented on 12/7/2012
    Stop the hate! Find common ground. Pass the tax for the middle class now, it's something both parties agree with. To hold the middle class hostage to avoid the tax cut for the 2% is insane! It disrespects the will of the majority that elected the president. It's time to work with the President! Entitlement programs like medicare, military spending (yes entitlement out of control, agree with Ron Paul) will need modification. I am tired of party politics, it's time to come together for the best interest of all of America. The House of Representative Leader is insulting! He is disrespectful to the American people and a legend in his own mind. I am in agreement with the President. He better do what he was elected to do. American business need certainty to start hiring people again. Take care of the people's business, not the Democrats or Republican business. One nation under God ... Not one nation divided by political party.
  • Jack from The Colony commented on 12/7/2012
    I believe we should jump off of the fiscal cliff asap. There are plenty of cuts to be made through out goverment including the military. Right now I would prefer that the overall revenue not be alowed to increase one cent rather than to focus on the details of the tax rate progression. That in addition to real cuts to reduce the deficit. We have a SPENDING problem. With that not being a realistic senerio, the cliff is the best option.
  • MICHAEL from ARGYLE commented on 12/7/2012
    I see that the house has proposed a budget which offers, in part, to lower the Social Security COLA. The COLA was cut drastically several years ago when food and energy were taken out of the equation. I suppose that the mental giants in Congress figured out that seniors didn't use energy to heat their homes or eat food so there would be little impact on those seniors. The current COLA doesn't even keep up with inflation now. Any further reduction will cause serious hardship on the population which depends on Social Security for the major portion of their very survival. I would more like to see Congress make cuts in other areas and repay the almost 2 Trillion dollars which was borrowed (STOLEN) from the Social Security fund. Couple that with a VERY slow increase in the age to begin full benefits would insure that Social Security will be viable for the foreseeable future. How about an across the board cut of a flat percentage of ALL government spending. I am talking about a REAL cut, not a reduction in the proposed increase. Perhaps if the penny plan proposed by Connie Mack could be dredged up.
  • ken from NRH commented on 12/12/2012
    I think the deficit is a far greater issue than the fiscal cliff. While we make a Armageddon attitue toward the cliff, it actually has little impact until year end. Doing the right thing is far more important that dealing with this percieved crisis. We need both revenue and expense reductions to solve our long term problems. Here is my suggestion: 1)Increase the tax rates accross the board on a progressive basis over the next 3 years and eliminate the payroll tax cut. This minimizes the shock and raises revenue. 2) Reduce expense by a progressive percentage over the same period. Actual expenses not the rate of growth. 3) Develop a ratio of $3 in expense reduction to $1 in revenue. The tax rates only increase IF the expense reductions are realized. Dont accept revenue first with promises of promised reductions. 4) Take this three years to put in place REAL tax reform that eliminates the social engineering and requires everyone to have an ownership stake in our government. Remember these were the Bush tax cuts, failure to renew them is the Obama tax increase. I hate taxes and beleive spending is the problem. When fat go on a diet, when spending too much, slow down. Thanks for all your hard work.
  • Miriam from The Colony commented on 12/12/2012
    Representative Burgress, I am hopeful that you will read this right away, but to make sure my voice is heard, I will call your office in the morning. The American people have voted loud and clear, and as one of your constituents I am requesting you please sign the petition to bring the Senate passed bill to the floor NOW. Thank you for your time and service.
  • Jesse from Keller, TX commented on 12/13/2012
    Please pass the tax cuts for 98% of the people. I believe the President will find common ground when it comes to spending cuts. The House has no leverage on extending the tax cuts for the 2%. House of Representative actions are damaging to the Republican Party and our economy. Quit blaming the President! Take responsibility that is in the best interest of our country!
  • Arleen Benton from Flower Mound,tx commented on 12/14/2012
    Reublicans, please work with Democrats to get fiscal cliff resolved. The election is over. You lost. War debt and collapse of financial collapse previous to President Obama administration has created a big part of our debt. I have followed all of this for a long time. The upper 2% of our population I am sure would be very happy to pay a little bit more--after all, this is adjusted gross income!! You can't take it with you!! Work together. Merry Christmas!!
  • Janice from Fort Worth commented on 12/14/2012
    I am a small business owner. Going over the cliff affects my employees immediately. I start withholding more from their paychecks the first pay period after Congress staggers over the edge. This is not a "tax everybody but me" position. As shared sacrifice with fellow citizens and love of country, I will accept higher tax rates on income and capital gains, along with eliminating or capping deductions. To save social security and medicare for all, I would pay increased social security and medicare taxes. I would raise the ceiling on wages subject to social security and medicare. I would wait to age 67 to retire. I would accept means testing. Tell the tea party loons to take a hike and get this done.
  • Shelli from Oak Point commented on 12/14/2012
    Pass the tax cuts for the middle class immediately! Allow the tax cuts to expire for the top 2%. Republicans, do not try to cut Medicare, Medicaid or Social Security. Do not attempt to "Voucherize" Medicare. Republicans, do not serve Grover Norquist and his cronies - serve the people that elected you. Republicans, ban together and tell Norquist and Co. to take a hike. If they "primary" you so be it. If you stand up for what the voters want and for what is right, I just bet Grover and his band of billionaires will get no where with their threats.
  • David from Double Oak commented on 12/14/2012
    I would like to see all tax cuts expire. I would propose raising payroll tax to 7%, with 7% employer matching contribution. I also would propose raising the medicare tax from 1.45% to 2%. I favor raising the limit for payroll taxes from $110,000 to $250,000. I am opposed to any other changes to social security or medicare. I'd like to see elected representatives sign pledges to their constituents instead of Grover Norquist.
  • Dick from The Colony commented on 12/14/2012
    The deficit problem was created by the Bush Administration, in which Burgess voted for most of the funding legislation. Where were all these comments about that 'out of controlled spending'? It was also compounded by the efforts to correct the economic problems created from the Bush Administration's 'Great Recession'. An example was the TARP I and II programs which were passed in late 2008 by the Congress and registered into the US Budget for 2009. The US budget cycle is a October to September calender. The 'Fiscal Cliff'' is not a CLIFF. It is the result of a 'pay me now' or 'pay me later 'environment. We are now faced with the 'pay me later' situation! If there is nothing done, no comprise made, then all will have their IRS and Payroll taxes set back to the original levels, the spending cuts will be equally spread among defense and non discretionary spending. Yes, the GOP and Burgess wants to cut Medicare benefits as an example! Burgess, as a multi-millionaire, thinks that he should not pay more taxes along with all the other 2% ERs. But he does not support continuous tax relief for the 98% ERS.
  • Jacob from North Richland HIlls commented on 12/14/2012
    If the Democrats do not cut actual spending then we should go over the cliff and only the tax breaks for those earning less than 250k should be enacted as requested by Obama. This would result in Obama getting what he wants and ovewr time his supporters would then start to see and feel what going over the cliff means. As that happens and Obama supporters start to feel the pinches (eg., payroll tax increases, no extension of unemployment taxes, etc) Obama supporters will switch and start to demand that Obama fix our finances as the Republicans are proposing. This may take 6 months +/- and most likely would not do too much damage to our eco9nomy but enough to the personal finances to demonstrate in real terms what the Republicans are talking and fighting about. In other words the Obama supporters need to feel the pain of Obama finances before they will demand real changes. Unforturnately those that support the Republican script would also feel pain but probably the only way to resolve and convince all people as to what needs to be done.
  • Dan Abbott from Fort Worth commented on 12/14/2012
    As an economist and a masters degree from Pepperdine. Also a major economist for Texaco, 7-Eleven and other multi national companies, I can tell you that when we had only so much money that our budget could not increase - well we cut expenses and leveraged our sixty country revenues. If you have any serious caring about this country and congress cared more about the people than their jobs, well you would not under any circumstances allow the debt ceiling to be raised another dollar. No excuses, just see how much our leaders really care about this country and especially the following generations including your kids and grand kids.
  • paul from Fort Worth commented on 12/14/2012
    As much as I hate to think about more taxes having been thru the 80 s whith all the continued tax increases ,I do not feel the spending cannot continue .This administration has made promise after promise if you do this we will do more latter . Thery have continued to lie to the American people . Please do not continue to fall for this kicking the can down the road. Let the Administration go to work and make them take the heat for the cuts both parties agreed to last year .My late disabled dad fought and and defended this great UNITED STATES aand taught me to honor my family name so just maybe the administration needs to be reminded of honor, what the family name can mean.
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