Senator Johanns e-Update
The fiscal cliff is fast approaching. On the first of the year, your current tax rates and a host of other expiring tax relief measures are scheduled to expire, as well as automatic spending cuts kicking in. If Congress doesn’t act, many experts and the nonpartisan Congressional Budget Office have said this will cause our already fragile economy to dip back into recession. Some have argued the cliff is more like a slope and its impact won’t be immediately felt. To them, I say, “why risk it?” This isn’t the time to play chicken when Americans are facing a tax increase of almost $536 billion next year – the steepest single tax increase in American history.
Don’t allow anyone to fool you into thinking this will not affect average middle income families. This includes popular provisions like the child tax credit. With the tax increases come sequestration, which consists of $110 billion next year in automatic, across-the-board federal spending cuts—half of which comes from national defense. I believe Congress must dramatically reduce its spending, but we must be thoughtful about how we make this happen.
The fiscal cliff demands action. We have to deal with some big problems and time is short. I believe we need a bridge to get us past the cliff, so we can devote 2013 to finding a solution that deals with our nation’s debt.
Many would have you believe that simply raising taxes on the rich could solve all our problems. It will not. Even if you did raise taxes on the rich, it would only generate enough money to cover a week’s worth of government spending.
Very little has also been said about entitlements. Entitlement spending and interest on our current debt are the main drivers of government spending. We must find a solution. The solution is much bigger than the year end fiscal cliff and much bigger than a mere discussion of tax hikes. What our country needs, what it deserves, is a long-term solution that ensures Medicare and Social Security are around for future generations, that our tax code is made more efficient and globally competitive, and that addresses our nation’s crippling deficits.
To keep you updated on important developments I launched a new webpage . I also welcome your comments and feedback. Share your ideas on our country’s fiscal situation by filling out the . I look forward to personally reading each of these comments and giving thoughtful consideration to your feedback.
Click here to leave your remarks for Senator Johanns.