Congressman Tom Reed is drawing attention to the need to not only avoid the looming fiscal cliff, but also direct any revenue toward deficit reduction and ultimately paying down the $16 trillion national debt.
"As we continue working to find common ground to avoid the fiscal cliff, it is growing clearer that revenue is going to be part of that conversation," said Reed. "Locally, we need to protect our small businesses and families in the Southern Tier and Finger Lakes from the fiscal cliff. We can do that by ensuring their tax rates do not go up on January 1."
Without action this year, all Americans -- from the lowest tax bracket to the highest -- will see an increase in taxes starting January 1, 2013.
"Considering revenue is a good thing in my opinion, as long as we ask the necessary follow-up questions," continued Reed. "Once we agree on what that revenue will be and where revenue will come from, we need a firm understanding of where that revenue is going. We need a commitment that revenue will go to reduce our annual deficit and ultimately help pay down our national debt."
Not extending tax cuts to the wealthiest will generate approximately $70-$80 billion in revenue annually. However, the annual budget deficit is more than $1.2 trillion. "If we allow revenue to go toward increased government spending, we are headed on the same path of out-of-control government spending that we are currently on," Reed explained. "Simply raising revenue pays for only about six or seven percent of the deficit. We need to ask the question of how to address the remaining budget deficit and bridge that gap."