http://www.washingtonpost.com/wp-dyn/co ... id=topnewsDemocrats Set High Goal Of Sweeping Fiscal ReformAs Senate Opens Stimulus Debate, Sacrifices Become More Urgent
By Lori Montgomery
Washington Post Staff Writer
Monday, February 2, 2009; A01
It's the holy grail of Washington politics: a federal budget that generates ample funds through a simpler and fairer tax code, defuses the spending time bomb for health and retirement programs, and supports the nation's economy during the worst downturn in generations.
President Obama and congressional Democrats have high ambitions to chart such a course, and say that they hope to strike a grand bargain with Republicans to bring taxes and government spending back into balance over the next few years, taming budget deficits that threaten to spiral out of control.
That goal has never been more urgent. The Senate opens debate today on a nearly $900 billion plan to pull the nation out of recession. If passed, it would send this year's budget deficit -- the annual gap between spending and income -- soaring toward a record $1.4 trillion, or nearly 10 percent of overall economic output, a level not seen since the end of World War II. The growing gap is rapidly driving up the national debt, causing lawmakers and budget experts to fret that the nation could be overwhelmed by mounting interest payments to private creditors even as it struggles to cover the skyrocketing cost of caring for retiring baby boomers.
But fixing the budget would require a kind of joint political suicide, with Democrats agreeing to trim costly social programs and Republicans acquiescing to a major tax hike. That kind of bargain has eluded previous administrations and seems highly unlikely now, even for a hugely popular new president.
Though key Republicans in the Senate say they are ready to work with Obama, House GOP leaders last week orchestrated a lock-step rejection of his economic stimulus package, signaling their intent to oppose rather than cooperate with the new president. Meanwhile, progressives in the Democratic party are preparing a major push for a big permanent increase in social spending, beyond the expiration date of the stimulus bill.
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For "sacrifice" to be fair, it cannot simply be once again giving the shaft to the taxpayers. If you are going to expect taxpayers to keep less and pay more, then government and those on the dole need to get by with less, too.