DECEMBER 2012
Democrats call for balanced approach on ‘fiscal cliff’
By Common Ground staff There appears to be room for compromise in Washington, DC on the looming fiscal cliff—a series of automatic tax increases and spending cuts that will kick in early next year if the President and Congress don’t take action to avert them beforehand. Days after the Election, both President Obama and House Speaker John Boehner outlined their approaches to the fiscal cliff. Boehner spoke out against any further tax increases, citing a consultant’s report that tax rate increases would “destroy 700,000 jobs.” But the GOP Congressional leader left the door ajar to the possibility of increased revenues that would presumably come
in the form of eliminating deductions and closing loopholes, rather than raising rates. In his own remarks, President Obama called for a balanced approach. “If we’re serious about reducing the deficit, we have to combine spending cuts with revenue. And that means asking the wealthiest Americans to pay a little more in taxes,” Obama said, according to a transcript of the remarks published by the Washington Post. “And I just want to point out, this was a central question during the election. It was debated over and over again,” Obama added. “And on Tuesday night we found out that the majority of Americans
agree with my approach. And that includes Democrats, independents, and a lot of Republicans across the country, as well as independent economists and budget experts. That’s how you reduce the deficit, with a balanced approach.” The President said his plan would reduce the deficit by $4 trillion over the next decade. He also specifically called for an immediate extension of middle class tax cuts that would benefit 98 percent of Americans and 97 percent of small businesses. Like Boehner, Obama left room for compromise: “I want to be clear, I’m not wedded to every detail of my plan. I’m open to compromise. I’m open
to new ideas. I’m committed to solving our fiscal challenges, but I refuse to accept any approach that isn’t balanced.” Democrats back ‘balanced approach’ Rhode Island’s newly reelected Democratic Congressmen endorsed Obama’s approach in statements released last month. “David agrees with President Obama that the only way to avoid painful spending cuts and across-the-board tax hikes is to reach a bipartisan agreement that asks the rich to pay their fair share. He will continue to press his Democratic and Republican colleagues in Congress to continue nego-
tiating until a compromise is reached,” said Rich Luchette, a spokesman for Congressman David Cicilline. “I applaud President Obama’s approach for dealing with our budget challenges in a balanced way that recognizes our country is at its best when the middle class is at its strongest,” added Congressman Jim Langevin. See Fiscal cont. on page 4
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