In early 2001, Paul O’Neill, the new Treasury secretary, began work on a plan for radical tax reform. He wanted simpler forms and fewer deductions, which would make it easy for people to prepare their taxes and cost the government less to process them. He presented a five-inch-thick binder of research to a senior White House official.
As they struggle to reach an agreement over how to extend the nation’s debt limit and trim budget deficits, Republicans and Democrats are turning to an enforcement tool, called a “trigger,” with a history of failure.
The implosion of the congressional supercommittee is likely to delay any major deficit-reduction agreement until after the next presidential election and may pose an immediate threat to the struggling U.S. economy.
President Barack Obama said the U.S. has “a unique opportunity to do something big to tackle our deficit,” and that he opposes a short-term measure that would raise the country’s debt limit without addressing more basic fixes to the government’s finances.
President Barack Obama said he opposes a deficit-cutting measure allowing for only a short-term increase in the U.S. debt limit as he called a meeting tomorrow with Republican and Democratic lawmakers to seek long-term fixes in the government’s finances.
House Democratic leader Nancy Pelosi named three of her most trusted allies to the special committee charged with finding $1.5 trillion in budget savings, amid growing doubts about the panel reaching a compromise.