Republicans recognize that without substantial reductions in government spending, the deficit will continue in an American death spiral, one that will continue to devalue the dollar and ignite inflation. But they're just as reluctant (read: "terrified") as most Democrats of cutting popular government mandates like Social Security and Medicare that make up the majority of spending. And no Republican in their right mind would cut defense, especially in wartime.
Responsible Republicans and Democrats both know there's not enough revenue to fund government spending. Both sides know they need to agree a tax plan, but both sides have their peculiar constituencies: Republicans, mostly business owners; Democrats, a vocal base of tax "the rich" class warriors.
Here's the compromise: (below the fold).
Read More