The Fiscal Cliff: Where We Stand

The Week Just Past: Talking  

The Administration’s Shifting “Red Lines” on Syria’s Weapons

Important Hurricane Sandy Deadlines

 

“As American families prepare for the Holiday season, Congress is at work trying to prevent the massive tax increases and drastic defense cuts scheduled for the end of the calendar year – the so-called ‘fiscal cliff.’

“And why is our nation at a financial crossroads that could potentially doom our economy? The answer is simple: Washington’s out of control spending over the last four years has increased our national debt to $16 trillion.

“Why is this important? Because today’s federal debt puts a crushing burden on our children and grandchildren – each child’s share of the debt is $51,000 today … $69,000 per child by 2016. 

“This year’s interest payment on the debt is $220 billion.  By 2020, the Congressional Budget Office projects the annual interest payment will be $778 billion.  Obviously, these numbers are unsustainable, even for the world’s economic superpower – the United States!

“There is no doubt that preventing our economy from hurtling over the ‘fiscal cliff’ will be very challenging.  This week we made a good-faith offer to avert the fiscal crisis and that offer included significant spending cuts and reforms, and it included additional revenue.

“Now we need a response from the White House.  If the President doesn’t agree with our proposal and our outline, we all would agree that he has an obligation to send one to the Congress - and a plan that can pass both chambers of Congress.

“I agree with Speaker Boehner: We stand ready and eager to work with the President to make sure that the American people are not hurt by what’s happening here in Washington.”

Rodney Frelinghuysen

The Fiscal Cliff: Where We Stand

In just over three weeks, the economy is set to fall off the “fiscal cliff” – a series of massive tax increases and “across-the-board” spending cuts which will damage the U.S. and global economy.

Last week, the President sent Treasury Secretary Timothy Geithner to Capitol Hill to deliver a proposal to Congress, outlining the Administration’s plan to avert the impending crisis.

Unfortunately, the proposal contained very little in the way of common ground and called for $1.6 trillion in new taxes, twice the amount that the President supported in his recent re-election campaign.

Instead of cutting spending to use the revenue to pay down our debt, the President suggests using $50 billion for a new ‘stimulus’ package, an extension of unemployment insurance that already provides benefits for 99 weeks, a one-year deferral of the “sequester” across-the-board budget cuts which will do nothing but postpone the difficult decisions the President and Congress must make.

Earlier this week, House Speaker Boehner sent a letter to the President in response to his unreasonable proposal.  In the House, we understand the necessity of finding a reasonable solution to this economic crisis and have made it very clear that we are willing to work with the President and Senate leadership to find middle ground legislation that will pass both Houses of Congress and be placed on the President’s desk for his signature.

Recommended Reading: Investors Business Daily editorial, ”White House Data Debunk Myth Bush Cuts Built Deficit.” While President Obama insists the Bush tax cuts caused the recession and record deficits, his own economists say otherwise.

Recommended Reading: David Sanger and Eric Schmitt, writing in today’s New York Times, U.S. Shifting Its Warning on Syria’s Chemical Arms.

Important Hurricane Sandy Deadlines

Some important deadlines related to Hurricane Sandy are on the horizon:

• Deadline for registering with FEMA for Individual Assistance: December 31, 2012
• Last day to check out of hotel motel for those approved for Transitional Shelter Program: December 13, 2012
• Last day to apply to the Small Business Administration for low-interest loans for structural damages and inventory loss: December 31, 2012
• Last day to apply to the Small Business Administration for economic injury loss: July 31, 2013

Some of these deadlines may be extended at the request of the state. 

To register for assistance or obtain information on FEMA’s programs, visit:

www.fema.gov.