Fiscal Cliff
The so-called fiscal cliff describes $545 billion in severe tax increases and spending cuts that are scheduled to occur in January 2013 if the president and Congress do not act. As projected by the Congressional Budget Office, the impacts of going over the cliff would include stunted economic growth, an increase in unemployment, and grave defense cuts that would weaken our military. Average tax returns would increase by $3,800 per year nationally and by $2,463 per year in Alabama.
Tax hikes that would result from the fiscal cliff scenario would hit small businesses —our country’s chief job creators— particularly hard and steer us towards financial destruction. Meanwhile, the spending reductions brought on by “sequestration” are inadequate, too heavily weighted towards defense, and will do nothing to put our broken entitlement programs on sounder financial footing. The President and Congress must put politics aside and devise a commonsense solution that will foster the conditions necessary for job creation and long-term economic growth. We can achieve these goals by reigning in government spending without raising taxes on families and businesses.
