Morning Joe Charts: Obama’s Revenue Proposal – Steve Rattner
These are short and sweet as to where things seem to stand currently. With there being 2 sides of reducing the deficit, and hence the debt, and virtually consensus among economist and other experts that we will need to attack our problem from both sides.
The 2 sides of this obstacle are raising revenues (raising rates, closing loopholes, or both), and cutting spending. One thing that a lot of people seem to not grasp is that our debt is not reflective of the immediate economy necessarily (though some might be less likely to invest in us if they think that we can’t control our debt), but it still remains important that we reduce it to a more manageable level (even though the world still sees us as a smarter investment than most of the industrialized world).
The Democrats in office have proposed that we raise revenue, and cut spending – and we’ve all been waiting to hear specifics. They have however been more specifics than the Republicans in office, especially now with the Democrats and the President proposing their plans. As of now the Republicans in office have yet to introduce specifics as to how we would approach our debt other than cutting spending (while being rather vague about any significant spending cuts). Talking about cutting NPR, Planned Parenthood, and even PBS and Sesame Street can all be a part of a principled debate, but it’s not a part of a real debate about getting our fiscal house in order. We need at least some moderate cuts in entitlement spending, and Defense spending. There is no other option. Also, that has to be coupled with revenue increases. Spending is historically high, even if only marginally (a few percentage points), and revenue that we bring in from taxes is historically low… That just doesn’t work.
So, here are a couple of charts about where we stand as of now.