Contrary to all expectations, congressional negotiators working with the administration and Vice President Joe Biden are reportedly making progress in finding some common ground on a package of measures to cut the deficit as part of a plan to potentially raise the debt ceiling.
This is extremely good news. The huge deficits now envisioned for the next decade are unsustainable and could substantially harm America’s economic prospects. Unless we want to resemble Greece soon, we need to move quickly to get our fiscal house in order.
One thing not on the table in the Biden-led discussions is additional tax increases. The Washington elites almost universally disapprove of tax increases — arguing that spending cuts and tax increases are necessary to bring the budget back into balance.