Sunday, April 17, 2011

Gridlock Could Eventually Shrink Deficit

A trick question: If Congress takes no action in coming years, what will happen to the budget deficit?  It will shrink — and shrink a lot. This simple fact may offer the best hope for deficit reduction. 

As federal law currently stands, some significant tax increases are set to take effect in coming years. The most important is the scheduled expiration of the Bush tax cuts at the end of 2012.