Showing posts with label Jerry Seib. Show all posts
Showing posts with label Jerry Seib. Show all posts

Friday, May 27, 2011

Did Tom Coburn just quadruple the debt ceiling ransom?

Tom Coburn, who recently withdrew from the Senate Gang of Six that was purporting to negotiate a comprehensive tax reform/deficit reduction deal along the lines of Bowles-Simpson, deserves some kudos for saying with increasing clarity that any such deal will have to include increasing tax revenue -- a point the GOP leadership and over 90% of the rank-and-file are unwilling to concede.

In an interview with the WSJ's Jerry Seib posted today, however (below), Coburn also sets the bar for a deal to raise the debt ceiling at $4 trillion in deficit reduction -- that is, a deal on the scale of President Obama's proposal, albeit obviously tilted far more to the right. The working media assumption, prompted by an intimation from Joe Biden, has been that a debt ceiling deal might block out about $1 trillion in cuts over ten years, and/or institute triggers mandating cuts if reductions don't hit targets at various points. 



At about 14:25, Seib asks whether a debt ceiling deal can take the country "some way down the path" toward deficit reduction.  Coburn's response (my emphasis):