It is amazing that in a time of wildly out-of-control federal spending and catastrophic debt, Washington may be moving toward a plan to raise taxes while making spending cuts that are far too small.
Some Senate Democrats and Republicans, with President Barack Obama's blessing, back a proposal for a $1 trillion increase in taxes, along with some immediate cuts in spending and a lot of eventual, "iffy" cuts. The plan's supposed $3.7 trillion in deficit reduction over 10 years equals only a little more than two years worth of current deficits. That's not a serious deficit reduction plan!
That proposal does provide some reductions in personal income tax rates, but it reduces the mortgage interest deduction and charitable deductions. That will further suppress the housing market and harm charitable giving. And the bottom line is, Washington will collect even more taxes than it does now!
The House of Representatives has approved a plan with smaller up-front cuts, but it would seek approval of a constitutional amendment requiring balanced budgets. That's needed, because Congress has proved it won't balance its budget on its own. Yet the House plan, because it does not raise taxes, is certain to be blocked by Senate Democrats.
Even with a crisis at the door, too many in Congress are not facing the need to cut spending massively.