As the U.S. gets closer to hitting its borrowing limit sometime this summer, Congress is trying to find a way to continue borrowing while avoiding the hard choices needed to reduce deficits and slow the growth of the debt.
But just as the House GOP plan never will even get a vote in the Democratic-controlled Senate, Biden’s budget is doomed in the Republican-controlled House. Besides, the president says he won’t even talk about the debt limit in the context of a budget.In the sort-of middle is a bipartisan group of about 60 House members who call themselves the Problem Solvers Caucus.
This may temporarily solve the debt limit problem. But a fistful of new budget rules and another fiscal study will solve no other problems.are a tried-and-true way for Congress to do nothing. Most come up with perfectly good ideas that Congress ignores. There is no secret to reducing the deficit. Lawmakers already know how. They just don’t want to.
It is the same with budget process reforms. Unless Congress really wants to cut spending and raise taxes, it will find ever-more clever ways to ignore its own fiscal rules.Golden, a member of the Problem Solvers group, aims to reduce annual borrowing by $250 billion for two years. He’d get there by adopting a 50/50 mix of GOP caps on domestic spending and Democratic tax increases on high-income households and corporations.
There will be much drama over the next few months. We’ll likely watch another of Congress’s self-made last-minute crises where the US reaches the precipice of the debt limit cliff. It may even stumble briefly over the edge. Or, under pressure from businesses and the financial markets, Congress may stop just short of disaster. But what it won’t do is enact meaningful deficit reduction.
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