WASHINGTON, D.C.—Southeastern North Carolina’s congressional delegation was split in its support of The American Taxpayer Relief Act, commonly referred to as a bill to avert the “fiscal cliff.”
U.S. Sens. Richard Burr, a Republican, and Kay Hagan, a Democrat, both supported the Senate bill, which passed 89 votes to nine votes in the wee hours of New Year’s Day.
The measure then passed in the House late Tuesday 257 votes to 157 votes, with 172 Democrats and 85 Republicans voting for it. U.S. Reps. Mike McIntyre, D-Lumberton, and Walter Jones, R-Farmville, both voted against the bill.
“While the deal we voted on tonight was far from perfect and not as comprehensive as I had hoped, I supported this proposal because it protects 99 percent of Americans from increased taxes, it provides permanent certainty on the estate tax and Alternative Minimum Tax, it provides one year of protection for the reimbursement of doctors, it extends unemployment insurance for one year, and the net result of the deal provides over $600 billion that should be used to pay down our national debt,” Burr said.
Hagan also said it was far from perfect, but voted for the bill, “so that we can stop a tax hike on middle class families in North Carolina.”
McIntyre voted against the bill, saying it would add nearly $4 trillion in debt, delay spending cuts and doesn’t provide comprehensive tax reform to benefit small businesses and job creation.
“The financial markets, small businesses and the American people are looking for stability and accountability, not a temporary fix. A comprehensive solution is needed that includes getting our national debt under control and reining in government spending,” McIntyre said.
Jones said the bill includes more than $40 in tax increases for every $1 in spending cuts.
“I’m tired of seeing Congress and the White House rob our children and grandchildren. America is nearly broke financially because its political leadership keeps passing bills like this that simply kick the can down the road,” Jones said.
The passage of The American Taxpayer Relief Act delays sequestration—automatic cuts to domestic and defense spending—for two months, according to a White House bulletin.
Effects of sequestration would be far-reaching and extend out of Washington, D.C., and in to area classrooms.
In Brunswick County, sequestration would mean “devastating cuts” to the school system, Superintendent Edward Pruden said.
In the current fiscal year’s budget, Brunswick County Schools received a total of $6.7 million in federal funding—$6.4 million of which could be in jeopardy if sequestration kicks in, Brunswick County Schools Finance Director Freyja Cahill said.
In Brunswick County classrooms, 128 teacher positions could be cut if sequestration takes place.
New Hanover County Schools could see about $1.1 million cut if sequestration takes effect.
“With sequestration, we would expect a reduction of about 8 percent in our federal funding, including Title I and IDEA (special education). The impact based on our current level of federal funding would be about $1.1 million per year.
“We reserved carryover funds in these federal programs last year to cover any current year impact if reductions are made effective as of Jan. 1, 2013. Specific reductions have not yet been determined. Any program changes would be made during the budget process with approval by the Board of Education,” New Hanover County Schools Chief Finance Officer Mary Hazel Small said.
Obama on Tuesday lauded the bipartisan support of the bill, saying neither party got “everything they wanted,” but reached an agreement that was best for the country.
“Leaders from both parties in the Senate came together to reach an agreement that passed with overwhelming bipartisan support today that protects 98 percent of Americans and 97 percent of small business owners from a middle class tax hike.
“This agreement will also grow the economy and shrink our deficits in a balanced way—by investing in our middle class, and by asking the wealthy to pay a little more. And as we address our ongoing fiscal challenges, I will continue to fight every day on behalf of the middle class and all those fighting to get into the middle class to forge an economy that grows from the middle out, not from the top down,” Obama said in a statement.
The agreement also extends unemployment benefits for about 2 million people for another year, and “saves $24 billion, half in revenue and half from spending cuts which are divided equally between defense and nondefense,” according to a White House bulletin.
But opponents of the bill said it does too much with tax increases and too little with spending cuts.
Ginny Quaglia, a local conservative political activist, said the bill’s passage marked the death of the “Republican brand” among lawmakers.
“They have officially crossed a line whereby they have accepted the language and the premises to the left to punish the ‘rich’ through greater taxation to spread the wealth. And they have neglected to address our real problem—spending,” Quaglia said.
Reach Caroline Curran at (910) 772-6336 or [email protected]. On Twitter at @cgcurran.
