Without action, a massive tax increase on middle class families and small businesses is set to take effect January 1. Combined with arbitrary spending cuts, known as the sequester, the impact on the nation’s economy has become known as the “fiscal cliff.”
The nonpartisan Congressional Budget Office reported that failure to avert the fiscal cliff would send unemployment back up to 9.1% and ensure it would remain above 8% through 2014. In addition, the CBO found that the U.S. economy is weaker that it previously reported and that the fiscal cliff would send it back into a recession.
The House has acted on a bipartisan basis to replace the arbitrary cuts of the sequester with common sense spending cuts and reforms, thereby achieving the budget savings without harming vital programs. We have also voted to prevent the massive tax hike and laid the groundwork for pro-growth tax reform that would help reignite the American economy.