“Class warfare” or “math” — that’s what the debate over raising taxes on the wealthiest Americans has boiled down to.
The consequences of doing nothing in Washington usually are not great. In this case, however, if the “supercommittee” can’t produce an acceptable outcome to both the Democratic and Republican leadership, we all will suffer as Medicare and defense spending are scaled back dramatically. So called “triggers” related to spending cuts would be equally split between defense and non-defense programs — though Social Security and Medicaid would remain unchanged. Credit agencies also might consider another downgrade of American debt in the aftermath.
Obama drew a line in the sand this week by boldly claiming to veto any deficit reduction that does not include some higher taxes on the rich. Republicans have been fighting back, but it makes sense to blink on this issue and get to work on serious deficit reduction and tax reform. Read