America's new superheroes: a budget committee? - CSMonitor.com
So are we stuck between a fiscal policy rock and an economic hard place? Not necessarily. It’s possible to stimulate the economy further, now, without increasing the 10-year deficit. It would mean steering funds away from spending and tax cuts that offer low “bang for the buck” economic stimulus and toward higher “bang” policies.
Then the deficit would be no higher but the economy would improve. That growth, in turn, would help brighten our debt outlook, as our economy would be better able to keep pace with our still-growing debt.
What shifts would be needed? The nonpartisan Congressional Budget Office lists payroll tax cuts and aid to state and local governments high on its list of fiscal policies designed to stimulate demand. Care to guess what falls dead last on that list? Extended income tax cuts.
