Here’s what I would hold out for, if I was a House Republican right now:
1: Balanced Budget Amendment, with a no-wiggle-room glide path towards a cap of total taxation no more than 19% of GDP.
2: Immediate, across-the-board 10% reduction in spending authority from FY2011 levels in FY2012 for all non-Social Security and non-Medicare (i.e. non-FICA-tax-funded) Federal programs, without exception—yes, that includes defense. That’s an actual, real, live, no fudging 10% haircut for the entire Federal Government—ALL of it.
3: A 10-year (at least) absolute cap in dollar terms, without adjustment for inflation, in all non-FICA-tax-funded Federal programs after the 10% haircut.
4: Enact into law an automatic, annual 1% reduction in the debt limit (based on the amount of debt authorized for FY2012), which can be overridden only by 2/3 majority vote of both houses of Congress.
Give me those things, and I’ll do one and only one additional hike in the debt limit. I’d even listen to some reasonable tax increases—er—”revenue enhancements” if it meant that the structural changes above would get enacted.
Then, we can start talking about how to reform the “entitlement” programs to ensure their solvency . . .
“2: Immediate, across-the-board 10% reduction in spending authority from FY2011 levels in FY2012 for all non-Social Security and non-Medicare (i.e. non-FICA-tax-funded) Federal programs, without exception—yes, that includes defense. That’s an actual, real, live, no fudging 10% haircut for the entire Federal Government—ALL of it.”
Sorry, I still think national defense is critical, and the Chinese are playing serious (i.e., I have children that I worry about). So swap it around - leave defense alone, and take the 10% out of Winnebego-drivers who still collect SS and Medicare.