Analysis of 2012 Federal Tax Reform, Part Three: The need for balanced budget reform
Now that the election has been decided, Congress will convene to discuss federal budget and tax reform. With the expiration of the Bush tax cuts set for January 1, 2013 and the looming “fiscal cliff,” Congress is under pressure to make meaningful and lasting changes to the federal budget. However, to date Congress has been unable to come to an agreement on the future of fiscal reform.
Congress needs to take a balanced approach to reform by including new revenues in addition to spending cuts. A one-sided, cuts-focused budget would be devastating to jobs and state budgets, as well as to economic recovery. It is critical that Congressional leaders step up and look at budget reform through a long-term, sustainable and progressive, not regressive, lens. Now is the time for Congress to take a balanced approach to the federal budget.