Cut spending and increase taxes.

There may be a silver lining in the clouds of gridlock that cover our federal government.  Congress’ inability to agree to spending and taxing priorities may allow us to take two significant steps forward towards balancing our federal budget deficit.  First, the Bush tax cuts will expire and income taxes will go up for everyone.  Second, the “sequestration” spending cuts will force across-the-board spending cuts on all discretionary spending including defense.  Every State will see substantial cuts in the federal money they receive.   (See “Looming budget cuts may cost Iowa $72.5M”, The Register, 10/1/2012)  There is nothing like sharing the pain to get everyone thinking about ways solve our fiscal problems.  It might be the best thing for our country to let these taxes to go up and to force spending down.

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