Deficit can't just be ignored

It’s easy to be cynical and jaded in considering whether the political will exists to actually tackle the federal deficit that has been fed by a chronic spending problem.

But there is room for some hope in that it has become increasingly clear these things just can’t carry on any more without dire results. Some real changes have to be made, and some lawmakers from both sides of the aisle have acknowledged that, describing the current situation as unsustainable.

Step one is getting the American economy back on the rails, and that starts with extending the Bush-era tax cuts that are set to expire at the end of this year. Doing so will restore some confidence and predictability for investors, consumers and job creators.

Economic growth, in turn, will provide federal revenue benefits. There is still lots of chatter among the political class about whether the tax cuts should be “permanent” or not, but that is just chatter, because future congresses cannot be restricted from raising taxes if necessary.

Addressing the deficit over a longer term may require some form of tax hikes, but that should wait for the day when the economy is fully functioning again.

The co-chairmen of President Barack Obama’s deficit commission released a preliminary report this month that frankly recognizes the country’s fiscal problems and offers up suggested solutions, including recommendations to reduce or eliminate tax credits, deductions, loopholes and other preferences.

Most importantly, it sends a clear message that the trajectory of government growth should be downward, calling for cuts in federal discretionary spending, including areas such as defense.

There really should be no sacred cows, and we think it is clear that austerity measures are more than possible for the federal government. Politicians in Washington can take a cue on tackling fiscal problems from states like Montana. It may seem strange to Beltway budgeteers, but Montana has a constitutional requirement for the Legislature to produce a balanced budget every two years.

That’s not always easy, so state lawmakers and the governor sometimes have to dig deep to find ways to make it work.

In New Jersey, Gov. Chris Christie has recently shown disciplined leadership in addressing his state’s serious financial problems, most notably in resisting public employee union demands and most recently canceling construction of a train tunnel to New York that might have cost more than $12 billion.

Surely, if that type of spending cut can be found in one state, others can be found in every federal agency.