Anticipating the coming fiscal cliff negotiations, Jared Bernstein points out something important:
When writing about a balanced approach to fiscal policy, one that involves both spending cuts and new revenues, it should be noted that Congress and the President have actually already cut $1.5 trillion ($1.7t including interest savings) in discretionary spending, not including war costs, over the next decade.
That’s 70% of the Simpson-Bowles discretionary spending cuts! Without that point, I suspect many readers will think we need to start with spending cuts and then we’ll talk taxes. But … a big start on the spending cuts has already materialized … so it’s tax revenue time, right?