In a Project Syndicate piece, former Chairman of President Reagan's Council of Economic Advisors Martin Feldstein reminds us about another idea to raise revenue from tax expenditures. Instead of going through each preference and figuring out the best course of action, it might be effective--and potentially politically easier--to cap the overall benefits taxpayers receive from tax expenditures.
Two new Third Way papers by David Brown, Gabe Horwitz, David Kendall together present an arguement that we have been making for a while now—that the only way to fix our deficit is with a plan that looks at both revenue increases and spending cuts. Third Way explores both relying on a revenue-only approach (specifically taxing the rich), and then a spending only approach, with the results being not so good.
The first presidential debate is now only one week away on October 3 at the University of Denver. With much of the first debate focusing on the economy, we look forward to hearing about how the candidates will tackle one of the most important economic issues: our rising debt.
In an interview with Charlie Rose at the Clinton Global Initiative's annual meeting, Treasury Secretary Timothy Geithner endorsed a "Go Smart" approach to the fiscal cliff and deficit reduction more broadly. First, he said that simply waiving all the policies in the fiscal cliff, even for a short amount of time, would not be a viable solution because of the message it would send to the public.
Yesterday, a group of six senators from both parties signed a letter to Senator Majority Leader Harry Reid (D-NV) and Minority Leader Mitch McConnell (R-KY) urging them to help replace the sequester with a smart and bipartisan debt reduction plan. The letter, signed by the Senate Armed Services Chairman Sen. Carl Levin (D-MI) along with Committee members Sens.
The United States Conference of Mayors has written a letter signed by 149 mayors across the country, a bipartisan collection including the likes of Philadelphia Mayor Michael Nutter, New York Mayor Michael Bloomberg, and Sacramento Mayor Kevin Johnson. The letter urges Congress to replace the sequester with a bipartisan, comprehensive deal that gradually stabilizes debt and puts it on a downward path as a share of the economy.
Today on Bloomberg, Edward Lazear -- the former chairman of the Council of Economic Advisors under former President George W. Bush -- talked about the revenue impact of Simpson-Bowles when comparing it to Governor Romney's plan.
The United States is not the only country in the world who has, or is, facing fiscal problems. Our neighbor to the north faced some severe fiscal problems during the mid-1990s when they had high budget deficits and when the Mexican peso crisis seemed to make Canada the next focus of international worries.