United Church of Christ - Prevent Another Recession

Prevent Another Recession

In 2011, Congress enacted across-the-board budget cuts to shrink the federal government deficit by $1.2 trillion over 10 years. This “sequester” will start in January, 2013. Federal spending will be reduced by over $100 billion each year with the cuts evenly split between military spending and non-military discretionary spending which includes safety net programs and most core government functions such as education, veterans’ medical care, low-income energy assistance, Head Start, environmental protection, job training, housing, foreign aid, and national parks.

More information

Congressional Budget Office foresees Recession due to Planned Deficit Reduction
Cutting military spending while preserving non-military discretionary funding will also create jobs. Each dollar of military spending creates significantly fewer jobs than a dollar of spending for health care, education, clean energy or similar programs. See “The U.S. Employment Effects Of Military And Domestic Spending Priorities”

In addition, a number of tax cuts are scheduled to expire at the end of 2012 that will increase taxes for most households. The combination of the cuts in spending and rise in taxes will, according to the nonpartisan and highly regarded Congressional Budget Office, cause a recession in the first half of 2013.

Tell Congress to change the 2013 budget. Don’t cause a recession: cut military spending, not the safety net or core government functions, and end tax cuts for the rich while preserving them for lower- and middle-income households.

To avoid a recession next year, Congress must cut less spending than is currently scheduled and continue some tax cuts so the deficit in 2013 does not fall so rapidly.

Spending: In recent years, Congress has repeatedly cut funding for non-military discretionary programs including safety net programs and core government functions. Under the sequester next year, these programs are scheduled for even more cuts; these must be halted. On the other hand, military spending has been rising rapidly, up by nearly 50% over the past decade. Next year’s planned cuts including the “sequester” would reduce military expenditures to 2007’s level, a year when the U.S. was actively fighting two wars which are now winding down.

Tax cuts: The people who most need their tax cuts continued beyond the end of this year are those with lower and middle incomes, many of whom have seen their incomes stagnate for 30 years. To help them, the payroll tax cut should be extended and income tax cuts should be maintained for lower- and middle-income households. However the income tax cuts must be ended for wealthy and upper-income people to bring in badly needed revenue.

Tell Congress to change the 2013 budget. Don’t cause a recession.

Cut military spending, not the safety net or core government functions.
End tax cuts for the rich while preserving them for lower- and middle-income households.

Our economic arrangements with each other should help the human community to flourish. At the root of our economic system must be fairness and justice. But the growing economic divide between rich and poor, and the lack of opportunity for all people to improve their lives is weakening the moral, social, and economic fabric of our country.

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Dear [Decision Maker],

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As a person of faith and a member of the United Church of Christ, I am very concerned about the 2013 federal government budget. Our economic arrangements with each other should help the human community to flourish. At the root of our economic system must be fairness and justice. But growing economic divergence between rich and poor and the lack of opportunity for all people to improve their lives is weakening the moral, social, and economic fabric of our country.

The Congressional Budget Office has predicted that if the budget is not changed, the planned reduction in the deficit will cause the United States to enter a recession in the first half of next year, boosting unemployment and causing hardship for millions of Americans.

The automatic, across-the-board sequester should not go forward. Instead, I urge you to halt the cuts in non-military discretionary spending, areas of the budget that have already been cut repeatedly in recent years. But military spending which has grown by nearly 50% over the past decade should be cut, as planned, to bring expenditures down to their very sufficient 2007 level.

In addition, I urge you to maintain payroll and income tax cuts for lower- and middle-income tax payers, but end them for wealthy households to bring in needed revenue.

Sincerely,

[Your Name]
[Your Address]
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[Your Email]