As lawmakers seek to keep our country from plunging into another economic and financial crisis, Congress must in the coming months make many tough decisions about spending and taxes. We must ensure that the millions of families across the country who are still struggling are not lost in this debate.

In 2010, more than 46.2 million people in the U.S. lived below the poverty line -- more than at any point during the five decades in which the U.S. Census Bureau has published poverty data. And sadly, the number of Americans living in poverty is projected to increase even more.

We acknowledge the need and support the effort to put America on a sustainable fiscal path. We must address the nation’s fiscal challenges now or we will suffer the consequences of failing to do so later. We understand that difficult choices will have to be made. But making difficult choices is not synonymous with making immoral choices.

The message is simple -- we are not asking for new measures or programs -– we are simply asking Congress not to increase poverty while reducing the federal deficit.

The Issue
The Congressional Budget Office (CBO) has issued its annual projection report for FY 2012-2022, estimating a $1.079 trillion deficit for FY 2012, while suggesting that deficits will begin to shrink beginning in 2013 if the Bush-era tax cuts expire and the $1.2 trillion automatic cuts outlined in the Budget Control Act are allowed to take effect. However, such action would likely also trigger higher unemployment and a sharp decline in economic growth.

In efforts to stabilize growing deficits while restoring fiscal responsibility, the president and Congressional leaders are continuing to debate and propose new and revised approaches for addressing the deficit.

IS Position
The IS Board of Directors has adopted Guiding Principles on Deficit Reduction and Tax Reform that will be used to guide IS analysis and commentary on budget, deficit reduction, and tax proposals

The Guiding Principles address spending and tax policy, and build on the premise that, as a matter of justice, fairness and effectiveness, steps taken to address the nation’s fiscal challenges should favor policies that will not exacerbate income inequality or increase poverty. Learn more.

Administration and Congressional Activity
Fiscal Deficit Commission (The Bowles / Simpson Commission)
Following its creation by President Obama's executive order in February 2010, a bipartisan deficit commission issued formal policy recommendations in December 2010 with the goal of bringing the budget closer to balance and restoring fiscal stability. Learn more.

President's Deficit Reduction Proposal
President Obama has unveiled his plan for reducing nation's long-term debt and deficits, including a framework to reduce the deficit by $3.5 trillion over the next 10 years. Learn more.

Super Committee / Sequestration (Budget Control Act of 2011)
In August 2011, President Obama and Congress reached a bipartisan agreement to raise the statutory debt limit through 2012 and reduce the deficit by over $2 trillion. Learn more.

Joint Select Committee on Deficit Reduction
A bipartisan panel of 12 lawmakers from each party in each chamber were charged with recommending at least $1.2 trillion in further deficit reduction. Learn more.

Statutory PAYGO
In 2010, President Obama signed into law legislation that re-establishes statutory pay-as-you-go (PAYGO) budgeting requirements mandating that most new spending increases or tax cuts be offset. Learn more.