Wiseacre
Retired USAF Chief
First of all, as it stands now we due for about another 9.6 trillion in new debt over the next 10 years according to the CBO if nothing changes. And that's the optimistic view. There's only one way out of this, and that is increased economic growth. More revenue coming in as a result, and less expenditures going out for unemployment and the like.
The left may not like it, but allowing the Bush tax cuts to expire in 2012 would be sure fire way to guarantee the economic growth we need would not happen. So you get an additional 3 trillion or so in revenue MAYBE, raising taxes on everybody would put a damper on everybody at a time when we definitely don't need it.
Some say okay, just raise taxes on the rich. Still a damper, but not as bad. Problem is, instead of 3 trillion is more revenue, now you're only getting 700 billion over the next 10 years according to the CBO. MAYBE not that much, rich guys are good at not paying taxes. So now you've still got 9 trillion in new debt and a sluggish economy. What then?
Answer: cut spending. It's the ONLY answer, which is why everyone else around the world who is in financial trouble is doing it. EVERYBODY. I'm going to tell you right now, if we don't find a way to come up with a bipartisan plan to deal with the debt and deficits, we're fucked. Doesn't have to be draconian, but it's gotta show a steady long term reduction in spending that eventually leads to balancing the budget and cutting into that debt. Revenue increases have to be a part of it when it makes sense and doesn't hurt economic growth, like in the 90s when Cinton raised taxes. But the lion's share has to be spending cuts in the big ticket stuff: entitlements and defense.
The left may not like it, but allowing the Bush tax cuts to expire in 2012 would be sure fire way to guarantee the economic growth we need would not happen. So you get an additional 3 trillion or so in revenue MAYBE, raising taxes on everybody would put a damper on everybody at a time when we definitely don't need it.
Some say okay, just raise taxes on the rich. Still a damper, but not as bad. Problem is, instead of 3 trillion is more revenue, now you're only getting 700 billion over the next 10 years according to the CBO. MAYBE not that much, rich guys are good at not paying taxes. So now you've still got 9 trillion in new debt and a sluggish economy. What then?
Answer: cut spending. It's the ONLY answer, which is why everyone else around the world who is in financial trouble is doing it. EVERYBODY. I'm going to tell you right now, if we don't find a way to come up with a bipartisan plan to deal with the debt and deficits, we're fucked. Doesn't have to be draconian, but it's gotta show a steady long term reduction in spending that eventually leads to balancing the budget and cutting into that debt. Revenue increases have to be a part of it when it makes sense and doesn't hurt economic growth, like in the 90s when Cinton raised taxes. But the lion's share has to be spending cuts in the big ticket stuff: entitlements and defense.