Merely letting the payroll tax reduction and other temporary provisions championed by Obama lapse on Jan. 1 and returning federal spending to pre-recession levels would erase nearly $900 billion from the deficit. The Bush tax cuts need not be touched, at least not to solve today’s deficits.
The real problems are two-fold. Republicans such as Senators Saxby Chambliss, Lamar Alexander, and Lindsey Graham, who are prepared to validate Obama’s spending spree by increasing tax revenue, would like their constituents to believe they are fiscal conservatives, when it seems they really have no stomach to curb spending the nation can’t afford.
The nation has become dependent on big deficits to sustain even modest economic growth and keep unemployment from surging above 8 percent, because the Obama administration and Congress have not adequately addressed the structural problems that caused the recession and are now holding back growth: