I am glad to be back in Washington D.C. and ready to get to work on the issues that are pending and important to you, the fiscal cliff being one of the most important ones.
On January 1, 2013 there are a wide set of policies that are scheduled to go into effect, including expiring tax cuts and scheduled spending cuts – this is what is known as the “fiscal cliff”. Top line items include:
- Expiring tax cuts: the Bush tax cuts, Alternative Minimum tax credit, payroll tax, estate tax cuts to name a few – estimated to effect 95% of households.
- Sequestration cuts: The $1.2 trillion in spending cuts across the board over a ten year period include cuts to federal agencies and programs, including education grants, border patrol agents, food safety, and scientific research, among others.
While these tax increases and draconian spending cuts would amount to the largest deficit reduction in more than four decades, it also has the potential to throw the United States economy into recession. For these reasons, Congress needs a grand deal that finds responsible spending cuts that sets our fiscal house in order and makes our U.S. tax code simpler, fairer and low. The fiscal cliff is on the horizon, and we must work fast. Both sides of the aisle must work together to reach an agreement for the American people. We must act quickly to create a plan to reduce our nation’s deficit while strengthening the middle class.
The taxpayers and voters send us here to work together to solve our nation's shared challenges, not to engage in partisan fights. It is our job to tackle this issue, and it is time for us to do it together, responsibly. As a conservative Democrat I am committed to work with my colleagues at the House of Representatives to keep the tax rate as low as possible, protect the middle class and remain an advocate of our seniors.
Congressman Henry Cuellar