Rep. Rokita votes 'no' on fiscal deal

WEST LAFAYETTE, Ind. (WLFI) - A last-minute deal made late Tuesday night will keep the U.S. from driving off the so-called "fiscal cliff."

Indiana Republican Congressman Todd Rokita voted to oppose the so-called fiscal cliff deal to increase federal spending by hundreds of billions of dollars.

Rokita said higher taxes and continued political fighting in Washington threaten to shake the fragile economy well into 2013.

"Congress and the White House have steered the nation around a fiscal 'pot hole,'" Rokita said. "We are still hurdling towards the real 'fiscal cliff.'"

The congressman voted against the deal that would avert widespread tax increases and delay deep spending cuts that had threatened to return the country to recession. 

"It was a difficult vote," Rokita said. "It was not easy because there were some good things to it. Among those good things would be the fact that 98 percent of taxpayers now have some certainty of what their tax rates will be."

But Rokita said the real fiscal cliff is the impending financial issues with programs like Medicare, Medicaid and Social Security that will drive our country into a $100 trillion debt during the next 50 years. 

"That's all being driven by the fact that 10,000 people a day are retiring into programs whether its Medicaid, Medicare or Social Security and that's driving 62 percent of our federal spending and causing us to have to borrow all of this money," Rokita explained.

However, Rokita said Congress and the White House still need to reach an agreement on a broader deal to significantly reduce the deficit during the next 10 years. He said this could boost business and consumer confidence and accelerate growth.

"Consumer spending will not be there in terms of confidence," Rokita explained. "A person that makes $50,000 a year is going to see probably $1,000 more in taxes a year."

The bill waiting for the President's signature extends long term jobless benefits for a year but doesn't include spending cuts or Social Security and Medicare reform, leaving many lawmakers like Rokita doubtful Washington will ever reach a sweeping budget deal.