While the “debt ceiling compromise” is far from perfect, it could have been a lot worse.
This bill does not contain any tax increases. That’s a big concession by the Democrats. It doesn’t mean that we won’t see any new taxes in the next few years — it just means that they will have to vote on them like any other bill.
The most important part of the new bill is the spending cuts. The new committee that will be formed by this bill must find specific spending cuts totalling 1.2 trillion dollars or else $1.2 trillion will be cut from the budget across the board.
These spending cuts and the bill’s ultimate goal of deficit reduction will help slow the unchecked growth of the Federal Government. We cannot keep spending billions on entitelment programs and keep borrowing billions for our wars under this new plan.
The big concern here is that Congress won’t follow this bill. They will allow the debt ceiling to increase as scheduled, but will create loopholes and exceptions for the spending cuts.
Even the journey of 1000 miles starts with one step, and this bill is a (very) small step in the right direction.Published in