[Sign Up Now] to Receive Our FREE Daily SCVTV-SCVNews Digest by E-Mail

SCVNews.com | Opinion/Commentary: Fiscal Cliff: California Would Lose Big | 11-19-2012
Inside
Weather
Santa Clarita CA
Clear
Clear
73°F
 
Calendar
Today in
S.C.V. History
June 28
1926 - Film director Mel Brooks born in Brooklyn; shot "Blazing Saddles" at Vasquez Rocks and "Robin Hood: Men In Tights" in Sand Canyon [story]


Commentary by U.S. Sen. Dianne Feinstein
| Monday, Nov 19, 2012

With the election over, Congress must now confront several pressing issues. Foremost among those is the “fiscal cliff.”

Unless Congress acts, the new year will bring about spending cuts and tax increases that will remove $700 billion from the economy, shaving more than 3 percentage points off economic growth. Economists agree that, if left in place, this perfect storm of policy changes would result in recession. Here is what would happen if the nation goes over the fiscal cliff:

– The Bush tax cuts will expire, affecting not only individual income tax rates but also capital gains, the estate tax, education tax credits and other credits for low-income families.

– The current (lower) payroll tax rate will increase and extended unemployment benefits will end, cutting benefits for some 500,000 Californians.

– Many business tax breaks will end, including the R&D tax credit and accelerated depreciation.

– Medicare payment rates to doctors will plummet by nearly 30 percent, jeopardizing health care for seniors.

– Millions more families will fall under the Alternative Minimum Tax, raising their tax burden.

– A series of across-the-board cuts will take effect, slashing federal spending by $1.2 trillion over 10 years ($109 billion in 2013) and endangering more than 2 million jobs next year.

California would be hit especially hard. A study by Professor Stephen Fuller at George Mason University shows that these cuts would cost California 230,000 jobs – 135,000 from the defense industry and 95,000 from non-defense sectors.

Yet, indefinitely delaying spending cuts and revenue increases is not an option. We have a federal debt problem that must be addressed to avoid a fiscal crisis. Replacing the fiscal cliff’s front-loaded spending cuts and tax increases with a long-term plan would achieve the deficit reduction required to stop the growth in our federal debt while minimizing the short-term economic pain.

The Simpson-Bowles Commission offered a good framework in 2010 for addressing discretionary spending, tax reform and entitlements. Such an outline, which balances spending cuts and increased revenues, is the only way we can ensure long-term growth and bring our debt under control. My hope is that President Obama will work with Congress to quickly lay out a robust, long-term deficit reduction plan before we plunge over the fiscal cliff. Such a plan, coupled with a credible down payment to shrink the budget deficit, should demonstrate Congress’ willingness to address this problem and make sure our economy does not grind to a halt. I have met several times with Mark Zandi, chief economist at Moody’s Analytics. He developed a plan over the summer that I believe accomplishes these goals. The “fiscal cliff” would be scaled down by half, and those cuts would be narrowly focused rather than made across the board. They still would be split between defense and non-defense budgets.

The Bush tax cuts would be extended, but only for those earning less than $250,000. While middle-class families have suffered during this economic downturn, those making the most have seen their wealth increase. It’s time they pay their fair share.

We must make sure more families don’t fall under the Alternative Minimum Tax and eliminate scheduled cuts to Medicare payments for physicians to ensure seniors receive proper care. To encourage economic growth, we need to extend key business tax breaks. This will help create jobs and increase revenue. This plan would reduce the $700 billion in cuts to $320 billion, limiting the economic impact and avoiding recession. And it would give Congress time to debate and pass a more comprehensive plan.

The electorate made clear its desire for both parties to work together. Right now, there isn’t anything more important than making sure the economy continues to grow and create jobs. I look forward to working with my colleagues starting this week to accomplish just that.

 

Dianne Feinstein represents California in the U.S. Senate. Her commentary originally appeared in the San Francisco Chronicle.

 

Comment On This Story
COMMENT POLICY: We welcome comments from individuals and businesses. All comments are moderated. Comments are subject to rejection if they are vulgar, combative, or in poor taste.
REAL NAMES ONLY: All posters must use their real individual or business name. This applies equally to Twitter account holders who use a nickname.

0 Comments

You can be the first one to leave a comment.

Leave a Comment


Opinion Section Policy
All opinions and ideas are welcome. Factually inaccurate, libelous, defamatory, profane or hateful statements are not. Your words must be your own. All commentary is subject to editing for legibility. There is no length limit, but the shorter, the better the odds of people reading it. "Local" SCV-related topics are preferred. Send commentary to: LETTERS (at) SCVNEWS.COM. Author's full name, community name, phone number and e-mail address are required. Phone numbers and e-mail addresses are not published except at author's request. Acknowledgment of submission does not guarantee publication.
Read More From...
Related Content
RECENT COMMENTARY
Sunday, Jun 25, 2017
The Antiquities Act does not give a president the authority to revoke a national monument from a previous administration, but a sitting president can change the boundaries of a national monument. Under congressional authority, Congress can also convert a national monument to a national park, which has been done on several occasions.
Thursday, Jun 22, 2017
Hooded orioles must be the most beautiful birds you can see in your backyard. They will be here until the third week of August, so catch a glimpse while you can.
Tuesday, Jun 20, 2017
Did you know the America’s Job Center of California at College of the Canyons is a FREE resource to help your business find the employees that it needs?
Monday, Jun 19, 2017
The Cadiz Project aims to provide a supplemental supply and storage opportunity in Southern California for local water agencies by conserving water presently lost to high-salinity and evaporation at dry lake playas that serve as the only outflow pf a 1.300-square-mile desert watershed.
Sunday, Jun 18, 2017
If you hope to live longer, you might consider a big move to Minnesota or Wisconsin, or you might choose an easier path to health by improving your odds where you live.
Friday, Jun 16, 2017
If you have Medicare as well as other insurance, always be sure to tell your doctor, hospital and pharmacy. This is important because it determines whether your medical bills are paid correctly and on time.

Latest Additions to SCVNews.com
Tonight on SCV NewsBreak, local government, law enforcement and fire leaders held a press conference and fireworks demonstration. Plus, The House of Natural Resources Committee passed the St. Francis Dam Memorial Act. Watch these stories and more on tonight's edition of SCV NewsBreak.
SCV NewsBreak for Wednesday, June 28, 2017
Santa Clarita Valley Sheriff's Station detectives seek the public's help to identify a theft suspect who has committed multiple thefts in Saugus and Valencia.
SCV Detectives Seek Help to ID Theft Suspect
Four Summer Robotics Workshops for young people in grades 5 through 8 are set for NASA's AERO Institute in Palmdale in July.
NASA AERO Institute Sets Summer LEGO Robotics Workshops
Avery Romero homered in his first at-bat and reached base in all four of his plate appearances to help the Lancaster JetHawks defeat the Inland Empire 66ers, 7-1, on Wednesday afternoon at San Manuel Stadium.
Romero’s Big Wednesday Helps JetHawks’ Tinoco to Sixth Win
Deputies from the Santa Clarita Valley Sheriff’s Station and FBI officials are investigating a robbery at the Chase Bank branch on Lyons Avenue in Newhall on Tuesday afternoon.
Suspect in Newhall Bank Robbery Still at Large
Senator Scott Wilk, R-Antelope Valley, announces the Joint Legislative Audit Committee today agreed to his request for an audit of Los Angeles County Homeless Service spending.
Wilk’s Request to Audit LA County Homeless Services Approved
College of the Canyons has continued to meet accreditation standards since the college’s fall 2014 accreditation, the Accrediting Commission for Community and Junior Colleges' Western Association of Schools and Colleges has confirmed.
COC Continues to Meet 2014 Accreditation Standards
Santa Clarita Valley residents are looking forward to the city of Santa Clarita's annual Fourth of July Parade in Old Town Newhall Tuesday, July 4 from 9 a.m. to 12:30 p.m.
July 4: Santa Clarita Fourth of July Parade
Independence Day Classic runners looking to re-fuel and pancake lovers alike can enjoy the Santa Clarita Valley Rotary Club's annual pancake breakfast on Tuesday, July 4 from 6:30 a.m. to 9:30 a.m.
July 4: Rotary Pancake Breakfast
Artist Randall Williams has completed painting a new 20-foot mural for the Domestic Violence Center’s Santa Clarita shelter, commissioned by Logix Federal Credit Union.
Artist Completes New Mural at Domestic Violence Center
Firefighters battle a fast-moving blaze that consumed 850 acres Sunday afternoon and destroyed structures on the Disney movie ranch in Placerita Canyon. Sparked by a car crash, the fire threatened homes on both sides of the 14 Freeway.
Updated: Placerita Fire at 760 Acres, 95 Percent Contained [Video]
The California state tax rate on tobacco products other than cigarettes will increase from the current rate of 27.3 to 65.08 percent of the wholesale cost on July 1.
July 1: Tax on Tobacco Products Spikes Per Prop 56
The Santa Clarita Valley Senior Center Silvertone Singers under the direction of John Swinford will present their "Fifty Years on the Great Broad Way!" concert at the Senior Center on Thursday, June 29 from 2:45 p.m. to 4:30 p.m.
June 29: ‘Fifty Years on the Great Broad Way’ Concert at Senior Center
Santa Clarita-based Pet Me Happy Treats, maker of Artisan Dog Treats with Oregon Blueberries, celebrates its official Grand Opening with a Chamber of Commerce ribbon-cutting hosted by Shelter Hope Pet Shop on Tuesday, July 11 at 5:30 p.m.
July 11: Pet Me Happy Treats Grand Opening
Get your Fourth of July off to a running start by taking part in the 35th Annual Independence Day Classic 5K and 10K Run/Walk at Newhall Memorial Park starting at 7 a.m.
July 4: Independence Day Classic 5K, 10K Run-Walk
Everyone from first-time racers and kids to professionals and enthusiasts are invited to take part in the Santa Clarita PedalFest Racing Series at Central Park, with the first race on Thursday, June 29 starting at 5:30 p.m.
June 30: First 2017 ‘PedalFest’ Race
"Aloha Broha," an exhibit of original art by Cyrus Howlett, will be on display at The MAIN in Newhall from Wednesday, July 5 through Friday, July 28.
July 5-28: ‘Aloha Broha’ Exhibits Art by Cyrus Howlett
The Lancaster JetHawks scored four runs in the top of the first but couldn’t hold off the Inland Empire 66ers in a 14-7 loss on Tuesday night at San Manuel Stadium.
JetHawks Squander Early Lead En Route to Rout Tuesday
1926 - Film director Mel Brooks born in Brooklyn; shot "Blazing Saddles" at Vasquez Rocks and "Robin Hood: Men In Tights" in Sand Canyon [story]
Tonight on SCV NewsBreak, Chiquita Canyon's expansion is approved by the county. Plus, deputies arrest a man after a standoff in Stevenson Ranch. Watch these stories and more on tonight's edition of SCV NewsBreak.
SCV NewsBreak for Tuesday, June 27, 2017
The Los Angeles County Board of Supervisors unanimously voted to approve the Chiquita Canyon Landfill expansion Tuesday afternoon with some amendments.
Supes OK Chiquita Expansion; Higher Fees for Non-SCV Trash
LA Summerfest presents the Leslie Berra Singers in a special performance at the Rivendale Park & Open Space on Saturday, July 15 from 8 p.m. to 11 p.m.
July 15: Leslie Berra Singers at LA SummerFEST
The Small Business Development Center at College of the Canyons will host a Veteran Entrepreneurship Series Parts 1 and 2 workshop at the University Center at COC on Friday, June 30 from 9:30 a.m. to 1 p.m.
June 30: SBDC Veteran Entrepreneurship Workshop
Princess Cruises®announced today that Golden Princess®, Crown Princess® and Ruby Princess® will be the next three ships to feature the Ocean Medallion™ wearable device.
Princess Cruises Adds 3 Ships to Interactive ‘Ocean Medallion’ Class
Visitors to the Los Angeles County Board of Supervisors' website were not met with the usual homepage on Tuesday afternoon. Instead, they saw a black screen with text in the middle, displaying what appeared to be pro-ISIS propaganda.
County Supervisors’ Website is Latest Casualty of Hack
Santa Clarita Mayor Pro Tem Laurene Weste cut the ribbon to mark the official opening of the Newhall Pass Open Space, located by the I-5 and 14 interchange.
City Briefs: More Open Space Dedicated
In honor of the Fourth of July, Six Flags Magic Mountain will be transformed into a four-day “All-American” weekend of patriotic festivities from July 1-4,
Six Flags Magic Mountain Hosts Coca-Cola July 4th Fest
Representatives Steve Knight (CA-25) and Julia Brownley's (CA-26) bill, H.R. 2156, the St. Francis Dam Memorial Act passed the House Natural Resources Committee with unanimous support Tuesday.
St. Francis Dam Memorial Act Unanimously Clears Committee
Julia Fulmer, a 16-year-old cancer survivor, is making her directorial debut by calling the shots on "Rachel's Pitch," a new original short film that began shooting in Santa Clarita on Monday.
Teen Cancer Survivor Makes Film Directorial Debut in SCV
Santa Clarita and Los Angeles County fire and law enforcement officials will hold a press conference in Valencia Wednesday to demonstrate the dangers of illegal fireworks.
Pyrotechnics Demonstration to Show Danger of Illegal Fireworks
The California Coastal Commission has reached a tentative settlement with sand mining company Cemex that would lead to the shuttering of a controversial sand-removal operation that residents say is eroding the coast of Monterey Bay.
Cemex to Quit Mining Near Monterey Coast
June 25–July 1 is National Mosquito Control Awareness Week, designed to educate the public about the significance of mosquitoes in their daily lives and the important service provided by mosquito control workers around the world.
June 25-July 1: Mosquito Control Awareness Week
The city of Santa Clarita’s Thursdays@Newhall series in Old Town Newhall, presented by Galpin Subaru, continues in July with a unique blend of music, performances, a beach-themed SENSES block party and much more.
Thursdays at Newhall Brings the Heat in July
Wes Rogers drove in four runs in the first two innings, and the Lancaster JetHawks held off a late Inland Empire 66ers rally in a 9-6 win on Monday night at San Manuel Stadium.
JetHawks Stave Off Sixers to End Skid Monday
A standoff between a man and deputies from the Santa Clarita Valley Sheriff’s Station at Valencia Marketplace this morning has ended peacefully, according to officials.
Updated: Valencia Marketplace Standoff Ends Peacefully
The California Highway Patrol is reminding motorists to slow down on the roadways and celebrate responsibly as our country’s Independence Day festivities draw closer.
CHP in Maximum Enforcement Mode on July 4 Weekend