Tax Fairness

The nation let out a collective sigh last week when a deal was made just hours before the country went toppling over the so-called “fiscal cliff.” Although the agreement passed by Congress and signed by President Obama provides temporary reprieve, it also left much to be desired. While the agreement ultimately reflected the public’s mandate to raise taxes on the super-rich, it also failed to define those who make between $250,000 and $400,000 as “wealthy,” extending all of their Bush-era tax rates permanently. This misclassification contradicts public opinion and will result in a dramatic loss in revenue, setting a dangerous precedent. Perhaps the most threatening decision made was to make no decision at all on across-the-board spending cuts, known as sequester, for another two months. These automatic spending cuts pose a serious threat to states and localities.

New Census data reported just this week painted a distressing picture: 46.2 million Americans still in poverty in 2011, median household income declining by 1.5 percent, and rising income inequality. As a snapshot of an America three years removed from the end of the Great Recession, the numbers serve as an important reminder that it's not just the tepid growth in jobs, but the increasing lack of good jobs and the slow corrosion of the middle class that should be the chief concern of lawmakers.