Fiscal cliff raincheck
The fiscal cliff has come and gone - for now - and there seems to be good and bad elements to the deal Congress reached no matter how you look at it. Here's an analysis from our friends at Americans for Tax Fairness, with our quick take below.
The Good -
For starters, we've made progress in getting the rich and big corporations to start paying their fair share.
The Bush era tax cuts that heavily favored the rich have expired on individual income over $400,000 and household income above $450,000.
Unemployment insurance benefits for the nation's struggling unemployed have been extended for another year.
And, we've avoided the senseless and indiscriminate ax of sequestration that would have slashed critical programs and services for everyday people.
The Bad -
Though the deal struck by Congress and the administration begins to raise revenue from the wealthy, it does not go far enough. We agree with Senator Harkin's take on the deal and why he voted against it.
CCI members and groups across the country pushed hard for the expiration of the Bush tax cuts on income above $250,000. That would have raised nearly $1 trillion over 10 years, while the current deal raises about $400 billion over 10 years.
Congress set the stage for yet another fiscal showdown two months from now by punting all decisions about sequestration to March when we will have to raise the nation's debt ceiling once again.
The Potentially Ugly -
Republicans and moderates in Congress will zero in solely on spending cuts during the next fiscal showdown, with little to no talk of raising additional revenue.
Don't be mistaken, we will once again hear calls for changing the consumer price index to a "Chained CPI". To be clear, the chained CPI is a benefit cut that affects every single American. The Chained CPI doesn't just reduce cost of living adjustments to Social Security - it will affect government pensions, veterans' benefits and over time would push more people into higher tax brackets. Annual adjustments to the poverty level would also be smaller, reducing the number of people eligible for Medicaid, Head Start, food stamps, school lunches and home heating assistance.
The Light at the End of the Tunnel -
We've got another fight ahead of us, no doubt about it. But, through your calls, letters and demonstrations over the past months we created a political environment more open to raising much needed revenue from the wealthy and big corporations and preserving vital social programs that benefit every American. We can do it again, and we will. Stay tuned for the latest updates and ways to take action, and make sure your elected officials know where you stand on the issue. The people's voice will be heard.