Signs of Progress

Charles Krauthammer endorses abolishing both the healthcare exclusion and mortgage interest deductibility. Add a carbon tax or VAT and you've got a Republican offer enticing enough to gain meaningful Democratic concessions on entitlement spending - while still meeting Republican goals of holding down tax rates on work, saving and investment.

Debt reduction is not an answer to the current global economic crisis, but debt reduction remains necessary to enhancing the long-term growth potential of the US economy post-crisis.