There is no way to rein in America’s debt with spending cuts alone, according to the CBO. So republicans who are refusing to raise the debt ceiling if the plan includes any increase in revenue are only making the country’s problem worse.
“If we continue our current policies, debt will soar, approaching 200 percent of gross domestic product by 2036. On the other hand, if we follow current law, debt will never crack 90 percent. And the biggest difference by far between these two alternatives is revenue,” according to a Congressional Budget Office report cited by the Center for American Progress.
Revenue will not increase sufficiently with more Americans earning less, and bigger tax breaks for the rich.
Michael Linden, the Associate Director for Tax and Budget Policy at American Progress disagrees with the republican claims that American has a spending problem, not a revenue problem.
“We do have a serious revenue problem,” Linden wrote in CBO’s Dire Debt Outlook Is Mainly Due to Lower Revenues.
All indicators point to the Bush tax cuts of 2001 and 2003, as the source of America’s debt crisis.
Had the republicans not insisted on extending the Bush tax cuts past their expiration in 2010, the US would not be facing a debt crisis as severe as it is today.