NEW CASTLE —
So are you relieved that the United States avoided the fiscal cliff last week?
For a variety of reasons, you shouldn’t be. Not the least of these is the fact that much of the cliff is still lurking in the near future.
Yes, Congress approved and President Obama signed a measure that cancels scheduled income tax hikes for most Americans. So long as your family’s earnings are below $450,00 a year, you’re safe on that point.
But payroll taxes for working Americans are going up. Essentially, they will return to the 6.2 percent rate that was cut as an economic stimulus measure during the recession.
The logic of this particular tax cut didn’t impress us, because the money involved goes into the Social Security Trust Fund. And that program needs all the money it can get.
Anyway, Washington’s politicians also pushed through a measure that doled out assorted tax breaks to special interests — the sorts of deals that look more like special-interest favoritism than sound public policy. But one thing missing from the package was anything resembling a plan to reduce federal spending and bring the budget under control.
Instead, Congress delayed planned automatic, across-the-board cuts for two months. So we can look forward to another fiscal cliff fight in February.
But wait! There’s more! In addition, a battle is looming in regard to raising the nation’s debt limit. This is the cap placed on the amount of borrowing permitted by the United States government.
Because much of this borrowing serves to cover the debt already owed by Washington, the failure to raise the debt ceiling would effectively put the United States in default of its bonds and related obligations. If this happened, the results to the international economic system are predicted to be catastrophic.
So the debt ceiling becomes a pawn in Washington’s budgetary battles. While many Republicans acknowledge the need to hike the debt ceiling, they argue it’s irresponsible to do so without tackling the deficit spending that makes it necessary.
Conversely, Democrats argue that the debt is money the federal government already has spent, and Washington has a duty to pay its bills.
Both sides make valid points. But every side has a valid point on matters of spending and taxes in Washington. What’s missing is a coherent plan to resolve differences. Not only is there no agreement in place for achieving that goal, Democrats and Republicans aren’t even talking about how to get there.
Instead, there is endless posturing and finger pointing. It’s a system that promises nothing more than to lurch from one fiscal crisis to the next. And as we’ll discuss tomorrow, that’s a sure way to stifle any economic recovery.
Editorials
Our Opinion: Washington gets tax deal, but the real work remains
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Our Opinion: Privatization of county jail is worthy of examination
Generally speaking, we support government efforts to seek more efficient ways to provide essential services. So we have no problem with the decision by the Lawrence County commissioners to solicit proposals for the private operation of the county jail.
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Our Opinion: We endorse candidates for New Castle board
The New Castle school district is often a study in contrasts. There are complaints about the district on everything from taxes to nepotism, from test scores to ethical slights. Yet at the same time, plenty of students within the district excel. It’s a tribute to the hard work of those students, their families and the educators who support them.
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Our Opinion: You should be frightened, outraged by IRS abuse of power
When people talk about government posing a threat to citizens, a common topic these days is unmanned drones. But a more credible threat may be the Internal Revenue Service. This agency, responsible for collecting taxes and enforcing related rules, has the ability to make life miserable for the average individual.
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Our Opinion: Our endorsements for City Council race
The city of New Castle needs help. Financially distressed and operating under Pennsylvania’s Act 47, New Castle must find ways to reverse its population loss and fiscal challenges.
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Our Opinion: Court frowns on gerrymandering, but only slightly
Pennsylvania legislators have received the green light to put their own political interests ahead of yours. That’s a key point in the latest Pennsylvania Supreme Court ruling on legislative apportionment in the commonwealth.
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Our Opinion: Study says distracted driving deaths are under reported
Suppose you operated a piece of heavy machinery at your job. And suppose it’s machinery that moves quickly with little effort. What would happen if you decided to take one hand off that equipment — while it was still in motion — and instead focused your attention on a telephone call?
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Our Opinion: Senate seeks to give states more taxing power
Congress is taking a stab at tax fairness. At least, where states are concerned. If you’re looking for meaningful reform of the federal tax code, that’s going to have to wait.
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Our Opinion: Look at handling of bombing suspects is warranted
We welcome an investigation into the handling of intelligence related to suspects in the Boston Marathon bombing. That probe may reveal little of value.
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Our Opinion: Right to know reveals intermediate unit problem
At this point, we have few details regarding the resignation of the director of this region’s intermediate unit. Apparently, there was a problem with purchases Cecelia H. Yauger made with a government credit card through the state agency that provides support services to area school districts.
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Our Opinion: New wave of ethics initiatives arrives in Harrisburg
There may be hope yet for Harrisburg. Recent signs suggest that even lawmakers are grasping that the ethics situation in the state capital is taking its toll. Maybe they are hearing from constituents who are fed up with the commonwealth’s seemingly endless string of scandals.
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