The US debt limit now stands at almost $29 trillion and has already been exceeded by a tad, with the Treasury employing emergency-type funding techniques to keep paying its bills (mostly wages).
Congress needs to vote an increase on the limit, but Democrats want a moratorium on the limit until the end of 2022 (ie no debt limit until then), while Republicans want no increase whatsoever. In other words, they are polar opposites.
Looking at the chart below I can’t really blame the Republicans…. On the other hand, I see the need for immediate investment in infrastructure, particularly in the sustainable energy sector.
How about this radical idea: BALANCE THE BUDGET! It’s not rocket science, just make sure taxes are raised back to a sustainable level. Trump pushed corporate and individual tax rates to record lows, so there is plenty of room to raise revenue.
Here’s a compromise: a small debt limit increase to tide things over now combined with an immediate significant tax increase on corporate, individual and capital gains income at the high brackets, plus a modest annual tax on large wealth.
It is high time for the US to understand it can’t print its way out of trouble ad infinitum..