’Tis the season of hope and miracles

By the time this magazine reaches your desk, the holiday season will be in full swing. From my perspective, this is a very special time. It is a time to give thanks for the many blessings we have received during the past year. Just as important however, it is also a time of hope as we prepare to ring in a new year.

Now that the election is behind us and the American people have selected a president and members of Congress that they believe will find the remedies for an ailing economy, it is time for these elected officials to burn some midnight oil if we are to ring in a happy new year. The need has never been greater to stop pointing the finger at one another and begin working together in a collaborative manner to support businesses – both small and large – create jobs, and reduce the national debt.

Truth be told, our success depends on the interaction between the House of Representatives and the Senate. The election did not change the physical makeup of either, and I believe an argument could be made that the real power and authority within our federal government lies within this legislative branch.

This said, we the American people are standing on the edge of a financial cliff and our Congress has one month to bulldoze the cliff down. If nothing happens, which is one thing Congress has experience in, we will be facing an economic crisis much like four years ago.

Should Congress do nothing, the policy changes slated to go into effect the first of the year will cause critical federal spending to fall and increase federal taxes by an estimated $607 billion the coming year.

For example, if the Bush-era tax cuts expire, federal taxes will increase by $221 billion next year, according to the Congressional Budget Office. The one-year payroll tax cut, which passed in December 2010 if not extended, will raise taxes by $95 billion in 2013. In addition, let’s not forget that sequestration, which is projected to reduce federal spending across government programs by $109 billion, is scheduled to begin on January 1, 2013.

On top of all this, we are also facing the expiration of unemployment benefits, cuts to Medicare providers, and the expiration of other current tax deductions.

As I said earlier, the holiday season is a time for hope. Both parties have expressed a desire to extend current policies in order to avoid letting the American people fall off the financial cliff. So, during this holiday season we need to remain hopeful that a last-minute agreement will take place in Congress. After all, Goldman Sachs believes there is a 65% chance that an extension is forthcoming and Moody’s is placing the odds of an agreed-upon extension at 85%. So, let’s remain hopeful and enjoy this holiday season, which is often referred to as the Season of Miracles.

On behalf of Aerospace Manufacturing and Design’s entire staff, I would like to wish you a very happy and enjoyable holiday season and a prosperous new year.

tgrasson@gie.net