If the commission makes a proposal that focuses only on the spending or revenue side of the equation, it will likely fail to rein in deficits. Rather than the spending-cut-dominated plan of Rep. Paul Ryan (R., Wis.)—which, as brave a step as it was, made sweeping and harmful changes to Medicare—I prefer a balanced approach that shares the burdens fairly. What would the options look like? When it comes to entitlement spending, the commission could recognize that Americans are living longer and raise the retirement age over a period of years. It might also make Social Security and Medicare benefits more progressive.
On the other side of the equation, nobody likes raising revenue—but sometimes it’s necessary. President Bill Clinton raised taxes and cut spending in 1993 to balance the budget, and it paved the way for historic prosperity. We could also learn from the bipartisan collaboration of President Ronald Reagan and House Speaker Tip O’Neill. In 1983, they agreed on a package of reforms to save Social Security, and in 1986, they made our tax code simpler and more efficient.
Recovering from years of borrowing is one of the hardest tasks a nation can face. History is full of great powers brought low by unsustainable debt. Avoiding that fate isn’t just the commission’s or Congress’s work. It’s incumbent on all of us to resist easy answers and look reality in the face. Fiscal issues have always been tests of national character, and I trust that we have the character to pass.
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