January 16, 2013
Fiscal Cliff Avoided – But the Work is not Complete
In the early hours of January 1, 2013, the Senate and then the House agreed to increase revenue by returning about 0.6% of the wealthiest Americans to the tax rates paid prior to the Bush era tax cuts went into effect. All of us who EARN a living will see our paychecks lessen as the payroll tax holiday has ended. This is a mere beginning of what needs to take place to put our nation on a firm economic footing. There was NO DEAL to find savings, nothing was done to curb the tax loopholes allowing corporations and wealthy individuals to avoid paying some (if not all) of their fair share of caring for our nation’s people and infrastructure.
NETWORK is grateful that we are not facing the ramifications of going over the cliff (or sliding down a steep slope).
However, we recognize that people struggling at the margins remain in great jeopardy. Our infrastructure (roads, bridges, schools, public buildings, transportation systems,….) is still crumbling, and has not been aided by the latest deal. Recent cuts ($1.6 trillion over 10 years) to discretionary programs halted repair of our infrastructure, increasing unemployment – as eliminating jobs is the only way federal spending cuts gain significant savings.
There are dangers ahead, as Congress looks to ways to pay our debts, to reduce the deficit, to complete the budget for the current fiscal year, and to develop a budget for FY2014 which begins October 1, 2013. NETWORK encourages balanced spending and revenue changes done with a fine brush, rather than broad sweeps.
We ask you to help encourage your legislators to make changes which will protect the most vulnerable and require fair support of our nation by those most able to give it.
Sequestration calls for across-the-board cuts of approximately 8%. This is a broad sweep, many important means of supporting the most vulnerable will be damaged, perhaps eliminated. A more fine-tuned approach to savings is necessary.
Reasonable Revenue for Responsible Programs is a strong sound-byte; but also an important message. Varied loopholes allow some millionaires and some of the most profitable corporations to pay zero income tax in some years. This needs to stop. There is a broad swath of government-funded programs, many are responsible for keeping people from starving, from sleeping in the streets and assist them with work-supports so they can suppo