For release December 22, 2010
Contact: Bruce N. Hahn: 571-214-1013
 

The American Homeowners Grassroots Alliance (AHGA) today praised both the Administration and Congress for their efforts during the lame duck session to address the budget challenges facing the nation. The $858 billion bill extends Bush era individual income tax rate cuts for all taxpayers for another two years, provides workers a new payroll tax break, and wealthy heirs a lower estate-tax rate. Numerous other special tax breaks were extended in the package as well.

Ironically, the huge package comes on the heels of the recommendations for severe federal budget austerity by the President’s Deficit Commission and several other highly respected groups of economists and political leaders. “We agree with the need for budget austerity, and believe that Congress should enact some synthesis of the President’s Deficit Commission’s recommendations and similar suggestions by others to bring down the deficit,” said American Homeowners Grassroots Alliance President Bruce N. Hahn. “However, the current recovery is still nascent and fragile at best. The economy needs further momentum before it regains the strength needed to withstand future budget cuts, and this package will hopefully provide one last dose of stimulus that will get us to that point.”

Another positive element of the exercise is the bipartisanship that lead to the resolution of the challenge. Substantial numbers of both Democratic and Republican legislators supported the measure. At the same time there was dissension within both parties from legislators on the far left and far right who opposed compromise. This may set the stage for a similar approach to some tough issues in the next Congress. Neither the far left nor the far right will be any happier with such an approach next year, but moderate voters – who outnumber both hardcore liberals and hardcore conservatives, would certainly be pleased.

In the interest of encouraging a more productive approach in the future, we encourage AHGA members to thank their senators and/or representative if they supported the effort, and remind any who didn’t that a divided Congress will only be able to do its job in 2011 if both sides give a little.