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The problems with the fiscal cliff deal for Albany

By   /   January 2, 2013  /   Comments

Apparently, Congress has averted the “fiscal cliff”, even if only for a short time.  However, there are real problems with what I have read about the deal that was reached.  These problems have a real impact on us here in the Albany area, and we need to start understanding how these national issues factor into our hometown.

First, there is the tax increase on individuals making more than $400,000 or couples making $450,000 annually.  There aren’t a lot of Albanians that are likely to fall into that category, and tax increases on the wealthy tend to play very well with the majority of Americans…most of whom will never see that kind of payday.

Those who have read my writing for any period of time may believe that I’m against tax increases on general principle…and they would be right.  However, I’m willing to accept them so long as they’re coupled with significant spending cuts.  Then, it shows me that the governmental body in question is simply trying to solve a problem as quickly as possible.

Unfortunately, this deal contains no spending cuts.

Folks, debt is not a good thing.  Some will argue that a tax increase will help with debt, but that’s a bit disingenuous.  You see, this tax increase will merely help slow the increase in debt (though we hit the debt ceiling on Monday, and without a vote to raise that, we probably won’t have more debt…to bad a vote will happen and itwill get raised).  Raising taxes, even on a small portion of Americans, has a negative impact on people throughout the nation.  In particular, Southwest Georgia.

What we need down here are jobs.  Jobs only come from one place, and that’s investment.  The very wealthiest Americans, the demonized one percent, are the most likely to invest.  These folks don’t spend the percentage of their pay checks that you and I do.  Nope, they invest.  It’s just what they do.  That investment spurs job creation as companies now have the capital to expand.

Now that these people have less disposable income, there will be less investment.  This is a simple fact.  Without more investment, we will see less expansion, which means we will have less opportunity to bring much needed new jobs to Albany.

That’s not to say jobs can’t be created.  Instead, I’m saying that the likelihood isn’t as strong as I would prefer.  If you’re out of work, you’d probably prefer them to be a lot better as well.

Tom Knighton is the Editor and Publisher of the Albany Journal.

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About the author

Owner / Editor / Writer

Tom Knighton is the publisher of The Albany Journal. In November, 2011, he became the first blogger to take over a newspaper anywhere in the world. In August of 2012, he made the difficult decision to take the Journal out of print circulation and become an online news agency, a first for the Albany area.

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