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  • Fiscal Cliff Threatens America's Economic Freedom

    The clock is ticking. Massive tax hikes are threatening to push America’s already declining economic freedom over the “fiscal cliff,” a politician-made economic catastrophe.

    President Obama’s proposal to avert the fiscal cliff is a $1.6 trillion tax hike plus new stimulus spending, along with expanded power for himself to raise the debt ceiling without congressional approval. The House Republican leadership has offered a counter to the President’s frivolous proposal, but the counterproposal appears to cave on tax increases and punt on entitlements. Heritage’s Alison Fraser and J. D. Foster point out that “the Republican counteroffer, to the extent it can be interpreted from the hazy details now available, is a dud. It is utterly unacceptable. It is bad policy, bad economics.”

    Such bad policies and economics will have a drastic impact on our economic freedom, which is already in trouble after four years of the “Yes, We Can” Administration’s programs and spending. Since 2008, America’s economic freedom has been declining at alarming rates: America has fallen from fifth freest economy in the world to 10th freest. (continues below chart)

    As the Heritage Foundation’s Index of Economic Freedom demonstrates, economic freedom is the path to prosperity. The decline of America’s economic freedom means that our economy is losing its capacity to achieve dynamic and sustained economic growth. That’s bad news for American individuals, families, and entrepreneurs, who will reap fewer rewards for their hard work in the future.

    Waning economic freedom means lost opportunities for average Americans. The opportunity cost of bigger government is paid for in the loss of economic vitality. A future with fewer jobs and lower incomes can wait at the bottom of the fiscal cliff, or it can follow just as surely from ill-designed policies to avoid it.

    There is a better way. The Heritage Foundation has proposed Saving the American Dream, a sweeping pro-growth tax and spending reform roadmap designed to grow the economy and restructure entitlement programs to provide real economic freedom and long-term security for the American people.

    As Heritage’s Kim Holmes noted in Understanding American Prosperity, “All of us—not just our politicians—must be vigilant, determined to safeguard liberty and the American Dream. And that means understanding that the foundation of American prosperity rests in economic freedom.”

    Posted in Featured [slideshow_deploy]

    3 Responses to Fiscal Cliff Threatens America's Economic Freedom

    1. Dave Strang says:

      Both parties seem to be approaching the fiscal cliff as children, on the other hand one would wonder if Obama really is serious about a compromise in hopes that "handships" from falling off the fiscal cliff would allow him to blame someone else for his own failed fiscal policies.

    2. RennyG says:

      Our entire country and way of life is threatened by this guy and his socialist agenda. Why should we be so concerned about one thing, the "so called" cliff!!!! I say "we" didn't cause this mess, why should we have to pay to fix it. Why don't he and the rest of the politions sacrafice their salary and benefits to pay for the mess they created or allowed to be created!!!!!

    3. McCarver says:

      Steve Forbes to the rescue, yet again. He has a great blog addressed to Boehner up today. It lays out a plan for the GOP to step up and stand for something, and get a deal done that is good for everyone without caving on important points:
      http://www.forbes.com/sites/steveforbes/2012/12/0

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