Deficit and Revenue

[S]enior White House officials now say they haven’t found a sufficient number of Republican partners willing to accept the revenue increases Democrats say must be part of any compromise.

In other words, Progressives’ “compromise” is for the opposition to go along with their demands for more revenue.  Never mind that revenue questions are no part of the deficit or of the resulting debt.

The shrinking of the deficit, although still too large and at any size contributory to our debt, results from already increasing revenue to the government.  The increased revenue, though, comes not from tax increases (the payroll tax holiday expiration goes to the Social Security System, not to the general Treasury, and the tax increase on those making over $400,000 totals to chump change compared to any year’s deficit) but from the slowly improving economy.  Thus, Progressives’ increased tax rates aren’t necessary to increase revenues to the government.

Spending cuts are what are needed to eliminate the deficit and so to start paying down the debt.  This graph, from The Wall Street Journal, illustrates the matter:

Revenue is up, even in Obama’s hindered recovery, but spending is up more in the projection.  The economy is producing the revenue needed (eliding the question of needing even that much); government needs to do its part and cut spending.  Drastically.

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