Washington's deranged debt dance: part deux

Here we go again. House Speaker John Boehner (R-Ohio) declared Monday that the GOP will roll the dice on the nation's credit rating again by refusing to raise the debt ceiling unless Democrats agree to more big spending cuts, entitlement reform and, of course, no tax hikes.

Brinksmanship like that was destructive when the GOP used it last July. The nation’s credit rating took the hit. A do-over when the debt limit is reached again in late 2012 or early 2013 would be incredibly irresponsible.

To cut deficits in the short term, the best thing Congress can do on this issue is nothing — something its very good at. If Congress just sits on its hands the Bush era tax cuts will expire Jan. 1 and spending cuts agreed to during last summer’s debt-ceiling crisis will automatically take effect. The result? About $5 trillion available for deficit reduction over the next 10 years. Unfortunately, Boehner said House Republicans are primed to extend the Bush tax cuts.

Long term, what the nation really needs is comprehensive  federal income tax reform that delivers lower  rates while eliminating loopholes and most deductions to generate new revenue. Congress also has to find a bipartisan way to reform Medicare and  Medicaid that saves money while preserving the programs’ guarantee of access to health care. Reponsible, bipartisan compromise is the way forward. Not the Boehner ultimatum.