July 11 2011
The impasse between President Obama and House Speaker Boehner over the debt ceiling is being framed simply in partisan terms rather than in fiscal realities. The truth is, Washington cannot tax its way out of this fiscal crisis - nor should it. Increasing taxes on the wealthiest Americans won't actually close the budget gap - it will simply slow economic growth just when the country needs it most.
Congress and the White House can reduce the deficit without raising taxes; but our leadership has not been willing to do the hard work or expend the political capital necessary to do so. As AEI's Arthur Brooks notes, the answer to the debt crisis involves "common sense". Aggressive spending cuts - not increasing revenue - are the only way to solve the problem.