Boehner Column: A Balanced Approach to Averting the Fiscal Cliff
Ideas get bigger when you share them...
Visit: Boehner Column
Washington - December 13, 2012 (www.investorideas.com newswire) Speaker John Boehner (R-OH) released the following column discussing Congressional Republicans' support of a balanced approach to averting the fiscal cliff:
"Just weeks away looms the 'fiscal cliff,' a combination of automatic tax increases and spending cuts that everybody in Washington claims they want to avoid.
"Republicans want to work with the president to steer our economy clear of the fiscal cliff in a way that finally begins to solve the problem of our nation's debt.
"We have a huge national debt because Washington spends too much, not because it doesn't tax people enough.
"During the campaign, the president spoke of a 'balanced' approach to the fiscal cliff and our debt – a combination of new tax revenues and spending controls, used in tandem to reduce the deficit.
"When the president says 'new revenues,' he means raising tax rates. Republicans are opposed to that because it will hurt small businesses and destroy jobs.
"But there's another way to get the president the revenue he seeks. By cutting spending and closing special-interest loopholes in the tax code instead of raising tax rates, we can avert the fiscal cliff in a way that helps our economy instead of hurting it.
"Accordingly, Republicans have signaled our willingness to accept some new revenues, if they come from tax reform instead of higher tax rates and are accompanied by meaningful spending reforms that begin to address the drivers of our country's debt.
"In re-electing a Democratic president and a Republican majority in the House, the American people gave both parties a mandate – not to raise tax rates, but to find common ground and act in the best interests of our country.
"I've cited the 1986 tax reform agreement between a Republican president, Ronald Reagan, and a Democratic Speaker of the House, Tip O'Neill, as one model of such a bipartisan accord. That agreement helped to pave the way for the strong economic growth America experienced in the years that followed.
"A more recent model exists as well, in the form of the proposal President Clinton's former White House chief of staff, Erskine Bowles, presented last year to the bipartisan Joint Select Committee on Deficit Reduction ('supercommittee').
"The proposal is basically this: both parties would agree to a balanced deficit reduction package that includes significant spending cuts as well as $800 billion in new revenues.
"To avoid doing harm to the economy, the new revenues would be achieved not through higher tax rates, but through pro-growth tax reform that closes special-interest loopholes and deductions and lowers rates.
"On the spending side, the plan would cut $900 billion in mandatory spending and another $300 billion in discretionary spending. These would be cuts over and above the spending reductions enacted via the 2011 Budget Control Act.
"This plan is a middle ground that would enable us to avert the fiscal cliff without doing harm to the nation's economy.
"On December 3, we sent this plan to the president as our counteroffer to his own fiscal cliff plan.
"The president's plan calls for a $1.6 trillion tax hike -- double what he campaigned on -- as well as billions in new 'stimulus' spending and the authority to raise the nation's debt ceiling to infinity.
This news is published on the Investorideas.com Newswire and its syndicated partner network
Get free news alerts:
Sign up here
Published at the Investorideas.com Newswire - Big ideas for Global Investors
Disclaimer/ Disclosure:The Investorideas.com newswire is a third party publisher of news as well as creates original content as a news source. Original content created by investor ideas is protected by copyright laws other than syndication rights. Investorideas is a news source on Google news and global syndication partners. Our site does not make recommendations for purchases or sale of stocks or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated by featured companies, news submissions and advertising. Contact each company directly for press release questions. Disclosure is posted on each release if required but otherwise the news was not compensated for and is published for the sole interest of our readers.
BC Residents and Investor Disclaimer: Effective September 15 2008 - all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info: http://www.bcsc.bc.ca/release.aspx?id=6894. Global investors must adhere to regulations of each country.