Sustained 3.5 percent annual GDP growth during the next 20-30 years would enable the U.S. government to meet all of its current budget and entitlement obligations without any spending cuts.
There is talk of extending all the cuts for a year or two, and linking any further extensions to a broader overhaul of the tax code: that would be an excellent outcome.
And if we don't do any revenue -- because you may hear the argument that why not just go ahead and do all the cutsand we can debate the revenue issues in the election -- right?
The Reid comments highlight a fundamental difference between the parties that promises to create strains all year as Republicans dig in against demands from Senate Democrats and the White House that any spending cuts be matched by tax increases.
What this all means translated into plain English is that Obama and the Democrats are flat out opposed to any spending cuts (outside of national defense, which they think only warmongers are for).