Overview for deficit

Toomey's Budget: Too Good to Be True

Sen. Toomey's budget proposal promises a budget surplus achieved painlessly through a combination of tax cuts and spending increases. It's not going to happen. I am mightily impressed by Sen. Toomey’s budget proposal. It promises to achieve a budget surplus and, most importantly, it does that …

Written by Andrew Pavelyev on Thursday May 12, 2011

Don't Link Debt Deal to Budget Amendment

Many conservatives are floating the idea of linking balanced budget amendment as the price for raising the debt ceiling. But this approach has some serious problems. More than a few conservatives are floating the idea that the passage of a balanced budget amendment should be the price for …

Written by Eli Lehrer on Monday May 9, 2011

GOP Retreats From Ryan Medicare Plan

Two weeks of recess, complete with ginned-up demonstrations against Medicare and Social Security reform were enough to lead to a GOP collapse on the fiscal front. That’s all it took for House Republicans to begin to scatter like a covey of quail? Two simple weeks of recess, complete with …

Written by Steve Bell on Friday May 6, 2011

Will GOP Back Tax Breaks Over Deficit Cutting?

Tax credits and deductions are substitutes for government spending. So why is there so much opposition to eliminating them? Martin Feldstein has an important idea . Despite the strong case for limiting tax expenditures, it is politically difficult to do so because no one wants to give up …

Written by David Frum on Thursday May 5, 2011

As Debt Talks Begin: Dems Hold Upper Hand

Republicans in Congress set to resume debt ceiling talks Thursday should go into them with a clear sense that they have a weak negotiating position. Republicans in Congress set to resume debt ceiling talks Thursday should go into them with a clear sense that they have a weak negotiating position. …

Written by Eli Lehrer on Thursday May 5, 2011

Debt Talks Stall Before They Even Start

Far from clarifying the fiscal debate, Congress has returned after the two-week Easter Recess to find themselves no closer to a debt deal. The death of Osama bin Laden dominates media, as it should. Yet, in the shadow of that dramatic story lies the continuing federal fiscal tar pit. Events …

Written by Steve Bell on Wednesday May 4, 2011

Norquist Moves to Nix Bipartisan Debt Plan

A new proposal by the Bipartisan Policy Center could make it easier to cut the debt. But some conservatives are already dismissing the plan for leaving revenue raising on the table. Can the debt be brought down if the Congress sets targets for how it wants to do it in dollar amounts? That is the …

Written by Noah Kristula-Green on Wednesday April 27, 2011

GOP Freshmen Take Heat For Ryan's Medicare Plan

During the two week recess in their home districts, Republican freshmen are getting challenged by constituents for their votes on Medicare. During the two week recess in their home districts, Republican freshmen are getting challenged by constituents on their votes which would drastically change …

Written by Tim Mak on Monday April 25, 2011

How Norquist's Pledge Blocks Real Deficit Cuts

Economically, Grover Norquist's rule on what constitutes a "tax increase" makes little sense. And politically, it's making deficit reduction much more difficult. Eli Lehrer has an incisive piece on this page about Tom Coburn's "Gang of Six" tax proposals. I believe however that the proposals …

Written by David Frum on Monday April 25, 2011

Coburn’s Reforms: Brave but Insufficient

Tom Coburn and his colleagues are showing a good deal of courage by putting taxes on the table. But the handful of specifics they’ve offered so far aren’t very promising. Tom Coburn, hardly a moderate or a shrinking violet by any measure, has effectively “ unsigned ” Grover Norquist’s pledge …

Written by Eli Lehrer on Monday April 25, 2011

Washington Flirts with a Debt Disaster

On Monday, S&P sent a wake-up call to Washington reminding them to get their debt act together. Yet, at week’s end, it’s easy to wonder if anyone got the hint. Lunacy abounds in every field, though it seems to appear most prominently in Hollywood and Washington, D.C., where the media takes …

Written by Steve Bell on Friday April 22, 2011

Bond Markets Brush Off Tea Party Threats

Bond markets are shrugging off the debt ceiling debate as political theater. That's a relief. But isn't it also kind of insulting to the Tea Party? Philip Klein of the DC Examiner correctly observes that bond markets are shrugging off the debt ceiling debate as political theater. From the …

Written by David Frum on Friday April 22, 2011

GOP Plays Weak Hand in Debt Debate

A look at the current set of Republican debt limit vote negotiating points ought to disappoint any committed fiscal conservative. Plenty of people have already spilled ink on why Congress should raise the debt limit and why failing to do so would be a catastrophe. Nearly all of the arguments …

Written by Eli Lehrer on Thursday April 21, 2011

GOP Won't Win Debt Blame Game

If the U.S. does experience a credit downgrade, the Republican party's reputation for economic competence will take a big hit in the eyes of voters. There may be less in Standard & Poor’s new negative outlook on US debt than meets the eye. There’s no actual downgrade of the US credit rating …

Written by Andrew Pavelyev on Wednesday April 20, 2011

Did U.S. Overreact to Debt Outlook Shift?

There's a lot of buzz about Standard and Poor's shift in outlook on U.S. debt. But a change in outlook isn't the same as a downgrade and, by itself, does little or nothing. There's a lot of buzz in Washington about Standard and Poor's shift in outlook on the United States' debt. I'm not sure if …

Written by Eli Lehrer on Tuesday April 19, 2011

Washington Moves Slowly After Debt Warning

S&P's debt outlook announcement shocked Washington. But with Congress out of session and members focused on jobs and gas prices, we're still no closer to a long-term debt deal. Standard and Poor’s unexpected announcement yesterday that it had put United States sovereign debt on watch with …

Written by Steve Bell on Tuesday April 19, 2011

Debt Debate: What Would Hamilton Do?

To get a fresh perspective, I attempted to contact the spirit of Alexander Hamilton for his take on the current political and economic debates in Washington. To get some perspective on current political and economic debates, I attempted to contact the spirit of Alexander Hamilton by resetting …

Written by Kenneth Silber on Tuesday April 19, 2011

Debt Downgrade: Are Voters Paying Attention?

Wall Street may have sent a stern warning over the debt, but voters and media still seem more concerned with political sideshows like Donald Trump. The past day or so I experienced that odd feeling that I might be existing in parallel but separate universes, a situation wherein two (or more) …

Written by Les Francis on Tuesday April 19, 2011

Wall Street's Wake-Up Call

Neither President Obama's deficit reduction plan speech nor Congress' response seem to have settled market fears about America's soaring debt. This morning Standard and Poor’s put its long-term rating on United States sovereign debt on negative outlook. The equity market, as I write, is off by …

Written by Steve Bell on Monday April 18, 2011

How Hoyer and Boehner Saved the Deal

The passage of the FY11 budget is only one win, but Boehner and Hoyer's ability to cobble together the needed votes is a hopeful sign for budget battles to come. Those of us in politics need to be careful about overreacting to or over-interpreting a single event. As any sports fan knows, an …

Written by Les Francis on Saturday April 16, 2011