President Obama has made his recommendations for reducing the federal deficit. The main points call for raising taxes on the highest incomes and cutting Medicare pay-outs. Republicans have already said the so-called Fair Share tax is a non-starter and few give it any chance of being adopted by the congressional super committee tasked with cutting the deficit.
But there is another approach, one that doesn’t require deep cuts to popular programs or raising taxes on Americans.
The key point to remember – and seems to have been forgotten in Washington – is that cutting the deficit and putting Americans back to work are linked.
Americans who aren’t working aren’t paying taxes. Instead, they’re collecting unemployment. Lower tax receipts and higher costs assistance programs add to the deficit.