RSS
TwitterFacebookGoogle+YouTubeLinkedIn

January 2013: Government Affairs

facebooktwittergoogle_plusredditpinterestlinkedinmail

Government Affairs

Protecting the Middle Class From the Fiscal Cliff

This is a very critical moment in America, and I continue to be concerned over the plight of the hardworking middle class during these trying times. The effects of the looming fiscal cliff crisis will go into effect on Jan. 1, should Congress fail to act. This is not an abstract theory and it is not Washington rhetoric. If we fail to act, there is not a single American who will not be affected by the consequences of increased taxes and across-the-board cuts – which are both inefficient and irresponsible.

We must act now to protect our seniors who depend on Social Security, Medicare and Medicaid. We must protect the hardworking middle class, many of whom are still struggling to make ends meet. Congress must act to ensure that we avoid the fiscal cliff and strengthen our economy, so we can focus on creating a healthier environment for businesses to hire and expand. Medicare and Social Security will not be there for our children, if we do not save these programs.

We got to this crisis because of Washington’s wasteful spending. It’s time we got serious about eliminating wasteful spending. Congress must start by going through the budget line by line and dollar by dollar, keeping what works and cutting the waste.

We should also take a serious look at ways we can make our government more efficient. I believe that we must prevent the fiscal cliff from harming middle class taxpayers through more efficient government and eliminating unnecessary tax loopholes for special interests. I support a bipartisan solution through eliminating waste and fraud without harming middle class programs like Social Security, which is consistent with the “balanced” approach President Obama says he wants.

House Republicans have offered to accept some new revenues as part of an agreement to avert the fiscal cliff, provided the revenue comes from tax reform and lower spending. Our country’s massive debt exists, not because tax rates are too low, but because government needs to reform the way it spends your tax dollars.

Unfortunately, the President’s solution would raise two income tax rates, which would harm small business owners, their employees, and their families, while funding the government for only five days in 2013 ($53 billion). Any tax increase raising rates will harm everyone, including the middle class and the poor, because it results in less jobs and economic growth for everyone. Now is a time we need to be protecting those who have jobs, not putting those jobs in danger.

The accounting firm Ernst & Young found that raising these rates would destroy over 710,000 American jobs. According to the study, if the President’s tax increase occurs:

  • Employment in the long run would fall by 0.5 percent, meaning roughly 710,000 fewer jobs in today’s economy.
  • Real after-tax wages would fall by 1.8 percent, reflecting a decline in middle class workers’ living standards.
  • The economic growth in the long-run would fall by 1.3 percent, or $200 billion in today’s economy.

Even with the president’s proposed tax hike, deficits would still average $715 billion a year during a second Obama term, according to his own budget. Even with his tax hike, the White House still plans to increase the national debt by $4.1 trillion in his second term. This is on top of the $4 trillion, which was added during his first term.

The year 2013 should be the year we begin to solve our nation’s debt problem through tax and spending reform, without harming those who depend on programs like Social Security. Such reforms are essential to achieving economic growth, without which our nation’s debt problem cannot be solved.

The House has already passed a bipartisan bill stopping all of the looming tax hikes. Republicans want to reach a bipartisan agreement that can pass both chambers of Congress. The fiscal cliff is approaching, and is now less than four weeks away.

We must now work together to restore personal economic security, confidence in our future, and in our American way of life. We cannot accept anything less, and we can no longer afford to wait. The small business owners and the middle class are the heart, soul and strength of this country. Congress must act now to ensure that they remain so by avoiding going over the fiscal cliff. We’re not fighting for ourselves, we’re fighting for America’s children: America’s future.

Return to Table of Contents

Related Posts

  • 45
    December 2011 Government Affairs Legislative Committee Update By Congressman Allen West On Sept. 8, President Obama delivered his jobs agenda speech to a joint session of the United States Congress. I commend President Obama for finally making jobs his top priority after more than 33 months in office. However, I was disappointed the American Jobs…
    Tags: president, $, tax, jobs, will, percent, american, government, spending, debt
  • 43
    January 2011 Government Affairs Lame Duck: Wrapping up the 111th Congress Matthew B. Keelen and Michael J. Falencki Before November’s new Members of Congress officially begin their terms, the 111th Congress was attempting to finish legislation and adjourn for the year. The two issues most pressing – expiration of the 2001 and 2003 tax cuts…
    Tags: tax, percent, will, year, congress, house, government, spending, fiscal
  • 42
    October 2010  Government Affairs The Value of Restoration Matthew B. Keelen and Michael J. Falencki As Congress returns at the beginning of September after being on summer recess for over a month, much of the attention is focused on the upcoming November elections. With attention to lagging jobs and economy numbers, many pundits predict that…
    Tags: tax, congress, will, percent, $
  • 36
    July 2010 Government Affairs Tax Reform Ideas: Vanquish the VAT Rep. Chris Lee (R – NY) As someone who has run a manufacturing company, I’ve seen the many stages of production that go into a finished product. I understand how taxing each stage of production will add to the end cost of the product, and…
    Tags: $, tax, spending, percent, government, will, debt, increase
  • 35
    December 2010  Government Affairs The 111th Congress’ Last Breath Looking toward the 112th Congress and the future Matthew B. Keelen and Michael J. Falencki  As widely speculated, Republicans took control of the House of Representatives, picking up 61 seats, for a majority of 240-189. As of this writing, six House races still have not yet…
    Tags: will, house, congress, tax, spending, government, reform

MASONRY MAGAZINE VIDEO NEWS

Zachary Zuldema 1st Place (2nd Year) Winner Interview at the World of Concrete

Zachary Zuldema 1st Place (2nd Year) Winner Interview at the World of Concrete

Bill Dentinger 2015 Inductee MCAA Hall of Fame

Bill Dentinger 2015 Inductee MCAA Hall of Fame

John Smith, Jr.

John Smith, Jr. receives the 2015 MCAA C. DeWitt Brown Leadman Award

2015 MCAA Fastest Trowel On The Block Winner

2015 MCAA Fastest Trowel On The Block Winner

Daniel Furr 1st Place Winner

Daniel Furr 1st Place Winner (First Year), Masonry Skills Challenge

Synpro Products

Masonry Magazine Video News Interview: Michael Goyne

Hydro Mobile Inc

Interview with Kevin O'Shea of Hydro Mobile, Inc.

Interview with Mark Kemp – Chairman, MCAA

Interview with Masonry Contractors Association of America Chairman, Mark Kemp

Mortar Net Solutions

Interview with Steve Fechino from Mortar Net Solutions

Pullman Ermator

Interview with Lyndon Kelsey of Pullman Ermator

Keene Building Products

Interview with Jim O'Neill of Keene Building Products