All the talk this week will center around the deficit committee entrusted to come up with a plan to shave $1.2 trillion or more of red ink over the next 10 years. That will not happen and if it does, Congress will not pass the measures.
The good news is that debt reduction is on automatic. Without action, automatic spending cuts are already law and will kick in in 2013. This will make the Reepublicans happy. Numerous tax cuts will expire at the end of 2012. This will raise even more revenue than the automatic tax cuts will save. This will make Democrats happy.
The automatic spending cuts and revenue raisers will start after the election. Under the automatic measures, spending and taxes will look more like the late 1990's when the economy boomed.
What do you think the chances are Congress will not mess with the automatic budget adjustments and tax laws? Me too.
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