The National Electrical Manufacturers Association (NEMA) has called upon Congress and the White House to rise above partisanship to find common ground to avoid the “fiscal cliff” threatening our nation’s economy, solvency, defense, and vital operations.
“Clearly, there are strong and legitimate differences of opinion among our nation’s elected officials on tax policy, spending levels, and how to resolve our long-term debt problems,” said Evan R. Gaddis, NEMA President and CEO.
“The failure to effectively deal with our fiscal situation and adopt pro-growth policies creates significant uncertainty, and businesses cannot plan for the future. This uncertainty is undermining job creation, investment, and expansion. Policy action is needed now, not at year-end.”
The “fiscal cliff” is a perfect storm of tax, spending, and debt deadlines at the end of 2012. These include the expiration of Bush and Obama tax cuts, across-the-board budget cuts (sequestration), and the federal debt ceiling. Private economists and the bipartisan Congressional Budget Office have warned that the simultaneous tax increases and spending cuts at the beginning of 2013 could push the economy back into recession. CBO projects, however, that if these issues were completely resolved, the U.S. economy would add two million new jobs and GDP would grow 4.4% in 2013 alone.
The eight deadlines that make up the fiscal cliff are:
• Expiration of the Bush/Obama tax cuts
• Automatic defense and nondefense cuts scheduled for 2013
• Reaching the federal debt ceiling
• A federal government shutdown if 2013 spending bills are not completed
• Expiration of numerous “tax extenders” like the R&E tax credit
• Expiration of the Alternative Minimum Tax fix
• Expiration of Medicare “Doc Fix”
• Expiration of the Payroll Tax Cut
“The CBO projections are astounding,” said Gaddis. “They clearly describe the nature of the situation, and should prod Congress to act. The risks of not eliminating this potential devastation are currently holding our country hostage. This shadow is looming over individuals and corporations alike. It is time for our government to come together for America.”
Listen to What is the “fiscal cliff” and how will it impact our economy?
LightNOW’s take: Congress has given up on governing. They’ve had two years, and they’ve done nothing. It’s time for a new Congress in November.
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