August 10, 2011

Deficit Committee: What Should Be the Line in the Sand?

Matthew D. Mitchell

Senior Research Fellow

With the majority of deficit reduction super committee members announced, the most important thing for the deficit committee to focus on is controlling spending. 

There is no point in resisting revenue increases if spending is allowed to increase unchecked. In that scenario, taxes increases aren’t prevented; they are just delayed.

Both high deficits and high taxes are harmful to the economy and politicians shouldn’t obsess about substituting one for the other.

I think Republicans have a tendency to want to substitute deficits for revenue, and Democrats tend to want to substitute revenue for deficits. Instead, the committee should work to get rid of the cause of both, which is more spending.