Best Column

The best deficit fix: Do nothing

Repairing the federal budget might seem impossible, says David Leonhardt in The New York Times, but Congress can shrink the deficit dramatically without taking any action at all

In our political culture, tax increases have become "unthinkable," says David Leonhardt in The New York Times, "even to pay for benefits people want." Yet we're facing gigantic — and growing — budget deficits that will remain "frighteningly large" over the next decade unless we slash spending and raise taxes. President Obama is pushing tax reform to make the affluent pay more, but "while those increases will certainly help, they're not enough." The Republican solution is "even fuzzier," with calls for cutting taxes for the wealthy, and eliminating mysterious, unidentified tax breaks at the same time. So what's the solution? Our "best hope for deficit reduction" may be for Congress to do nothing at all, and simply let all the Bush tax cuts expire on Dec. 31, 2012. Here, an excerpt:

If Mr. Obama wins re-election, he could simply refuse to sign any budget-busting tax cut for the rich — who, after all, have received much larger pretax raises than any other income group in recent years and have also had their tax rates fall more. Republicans, for their part, could again refuse to pass any partial extension. And just like that, on Jan. 1, 2013, the Clinton-era tax rates would return. This change, by itself, would solve about 75 percent of the deficit problem over the next five years.

Read the entire piece in The New York Times.

Recommended

The end of the line for Boris Johnson?
Boris Johnson
Talking point

The end of the line for Boris Johnson?

The GOP vs. Alvin Bragg
GOP Reps Jim Jordan and James Comer
Behind the scenes

The GOP vs. Alvin Bragg

Trump's extradition dilemma
Sign outside Manhattan courthouse
Behind the scenes

Trump's extradition dilemma

Will Ron DeSantis run for president in 2024?
Ron DeSantis.
Briefing

Will Ron DeSantis run for president in 2024?

Most Popular

Mosquito species from South America discovered in Florida
Culex lactator.
new in town

Mosquito species from South America discovered in Florida

DeSantis' no good, very bad week
Ron DeSantis at a podium
Behind the scenes

DeSantis' no good, very bad week

Essential molecules for life may have been 'delivered' to Earth from space
Asteroid Ryugu.
alien invasion

Essential molecules for life may have been 'delivered' to Earth from space