now or later
It doesn’t fix a fiscal cliff to create another fiscal cliff, Lankford said.
“If we can’t find a way to do what’s strategic then it cuts $120 billion a year,” Lankford said. “You just delay sequestration for a year, then next year you have to find $240 billion.”
Beginning Jan. 1, the Affordable Care Act will increase taxes for people earning $200,000 or more a year in interest, dividends, capital gains and payroll tax.
Obama’s recommendations for a tax increase coupled with the Affordable Care Act tax increase calls for $86 billion of additional spending a year, Lankford said. In addition, everybody’s tax rates go up from smallest to largest if a solution is not reached to avert the fiscal cliff, Lankford said. Thirdly, the across-the-board spending reduction Congress demanded in the budget deal will begin.
Lankford said the House passed all the documents it needed to pass for sequestration in May, and the tax policy in August.
“We have waited for the Senate to answer back,” Lankford said. “We are determined but the Senate isn’t doing its work. You can’t just have the House perpetually sending things over to the Senate until the Senate decides what they like.”
Reid has been frustrated that the House isn’t doing what he wants, Lankford said. The House functions with a majority rule. The role of the Senate is to form compromises between both parties to move anything forward, Lankford said. Reid wants the House to continue sending a bill over for a vote, Lankford said.
“We think there is a responsibility for the Senate to actually do its work as well,” Lankford said. “That is the legislative role out there that has to be settled.”
There will be economic slow down, Lankford said.
“We can either have the pain now or we can have the pain later,” Lankford said. “And, we think the pain later is even worse.”
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