LOS ANGELES —
Chief executives of more than 85 major U.S. corporations jumped into the debate over the federal budget mess Thursday, calling on Washington to put its fiscal house in order by raising tax revenue, cutting spending, controlling the growing cost of healthcare entitlements and assuring the sustainability of Social Security. They endorsed a set of principles, not specific policy proposals, and they tiptoed around the question of how to take the steps they’ve recommended without damaging the fragile economy. But the path they charted is the same one that a growing number of bipartisan groups have been advocating for more than two years. Although the details won’t be easy to agree on, the framework of a grand compromise should by now be obvious to lawmakers.
In fact, it should have been obvious long ago. Seemingly every group not wedded to a particular ideology that has looked at the federal government’s long-term deficit and debt problems has come to the same set of conclusions.
First, the government’s current trajectory is unsustainable. Second, the most significant threat over the long term is rising healthcare costs in Medicare and Medicaid. And third, Washington’s budget gap is too wide to be closed just by slashing spending. Congress also needs to increase revenue, preferably by curbing the profusion of exemptions, preferences, credits and deductions in the tax code.
Nevertheless, top lawmakers worked in vain for months last year on proposals to bring the deficit and debt under control, unable to agree even on the outlines of a deal. Too many Republicans were anchored to a pledge never to raises taxes — a promise based less on economics than on the politics of winning a GOP primary.
And now their party’s standard-bearer in the presidential race, former Massachusetts Gov. Mitt Romney, says he too would oppose any increase in revenue. His arithmetically challenged formula for deficit reduction involves lowering tax rates without reducing revenue, while increasing the defense budget and slashing domestic programs. Good luck with that.
Not that President Obama and his Democratic allies have been blameless. They’ve been so determined to end the Bush-era tax cuts for the wealthy, they’ve paid little attention to the need for a tax overhaul.
Meanwhile, the economy remains stuck in first gear, keeping unemployment high and tax revenue low. Without faster economic growth, Washington will never be able to solve its fiscal problems.
Yet instead of encouraging growth, the federal government may slam the brakes on the economy in January, when a series of huge tax hikes and across-the-board spending cuts are scheduled to take effect. This looming “fiscal cliff” is the ugly result of Congress repeatedly putting off tough budget decisions.
The powerful incentives provided by the fiscal cliff should persuade lawmakers to accept the principles laid out most recently by the chief executives in the nonpartisan Campaign to Fix the Debt. That’s just the starting point, of course; other obvious points of contention are how deeply to cut spending and what to cut. So too is how to shift from stimulus to deficit reduction without stunting the economy.
Still, simply having a plan that lays out future changes in taxes and spending would help dispel the uncertainty over federal policy that is hampering economic growth. The sooner lawmakers accept the path laid out by groups like Fix the Debt, the better.
Opinion
Los Angeles Times: CEOs to D.C.: Get serious
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Don’t leave Oklahoma!
May is graduation season. As I have done every year as lieutenant governor, I have given multiple commencement speeches. Advice flows freely during this time and it usually runs the gamut. What to do, what not to do, how to do ‘x’, be sure not to do ‘y.’ Too often commencement speakers speak in big generalities. So general, the message is frequently lost or forgotten.
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Last-minute funding proposals not in state’s best interest
All indications point to this being the last week of this year’s legislative session. The Legislature will go home a week early. This is good news for Oklahomans as not only will there be cost savings but all Oklahomans should breathe a sigh of relief when the Legislature stops making new laws a week ahead of schedule.
As usual, the Legislature will take a number of important votes during the last week. Some will be forced due to attempts to introduce and pass far-reaching, new policies that should have been introduced much earlier in the year. -
BY THE NUMBERS: Oklahoma still needs to invest in its economy
After six months of stagnation, the Oklahoma economy finally appears to be expanding again albeit still weakly. Unfortunately, our leaders aren’t making the investments we need to give our economic prospects a boost.
Last week the Oklahoma Office of Management and Enterprise Services reported that in April state General Revenue fund collections were 5.2 percent above the estimate and 14.7 percent higher than last year’s collections. Under normal circumstances, such a report would indicate that the Oklahoma economy was very strong. But this isn’t a normal circumstance, and April isn’t a normal month. -
Americans deserve the truth on Benghazi
Lately, the media has been consumed by the controversies surrounding the White House. Among these controversies is the horrific terrorist attack on the United States’ diplomatic compound in Benghazi that took place Sept. 11, 2012. As more people come forward with additional information regarding the attack on the consulate, many Americans, including myself, are still asking for the truth.
The Obama Administration and the State Department have been less than forthcoming with key information on Benghazi and recent information points toward a major cover-up. -
Seizure of AP phone records insult to independent press
Distrust of government secrecy has been elevated to an exceptional level with the disclosure the Justice Department covertly examined two months of Associated Press phone records to determine who leaked details to the AP about a foiled terrorist plot.
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HEY HINK: Some people just are not cut out for command
Recent headlines cause me to remember an incident that occurred on an army base some years ago. Warning here: I’m taking some liberties with names and details, but the basic outline of events is accurate.
A certain company commander, let’s call him Captain Duntz, had command of a motor pool on a large army base in the continental U.S. -
We’ve become our own worst enemies
The past couple months have been marked by a seeming unprecedented number of man-made tragedies, as distinct from those caused by violent outbursts of the natural world, such as earthquakes, hurricanes and tsunamis.
You don’t want to dwell too long on the negative, but we do have to take notice of horrific human events and we owe it to ourselves to respond to them in some way. We don’t always agree on those responses, however, and that usually exacerbates the problem. -
Let’s reimburse higher ed for remediation costs
The good news: Oklahoma schools are teaching phonics. The bad news: It’s in college.
Students at Tulsa Community College, for example, can take a college English course called “Spelling and Phonics,” which “helps students master basic spelling literacy, principles of phonics and decoding skills.”
This sort of higher education brings to mind former Boston University president John Silber’s quip: “Higher than what?” -
AGAINST THE GRAIN: Department of Commerce highlights Main Street successes
The 24th annual Oklahoma Main Street Awards Banquet was at the National Cowboy & Western Heritage Museum last week. Oklahoma Department of Commerce Secretary Dave Lopez addressed the gathering, and spoke of how the Commerce Department works with Main Street organizations throughout the state that are working to improve their downtown areas. Lopez pointed out that the partnership between his department and those local organizations has brought new life to those communities and that the attendees would see some of that revitalization in a video presentation. Oklahoma Gov. Mary Fallin also addressed the gathering, and said the Main Street program has resulted in more than $1 billion in investments in the state and more than 1 million volunteer hours in its 24 years of operation.
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OUR VIEW: Be Edmond needs your help
BMX star and local legend Mat Hoffman knows what’s it like to fall from great heights and find yourself at one of the worst low points in life. He also knows how to climb back up and tackle life’s problems head on.
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Don’t leave Oklahoma!
