No matter how this raucous debt-ceiling debate turns out, the back-and-forth among the White House and congressional leaders has turned up serious reforms.
The roller-coaster nature of these negotiations is not the textbook way to get things done, but it hasn't been vapid, either. Substantial ideas have been put forward.
Look at some of the proposals that have emerged from the Senate's Gang of Six. We'd be loopy to not enact these ideas, now or later:
• Collapse the number of tax rates: The Gang proposes flattening our six individual brackets to three. They would range from 8 percent to 29 percent of income. Do it. A flatter tax code would make the system less confusing for individuals and companies.
• Lower the corporate income tax rate: Knocking down the corporate rate would give businesses more cash to invest. And investment means jobs.
• Modify or end tax exemptions: We can't lower rates without making up for the lost revenue. Curtailing exemptions gets you there.
• Change the way government benefits are calculated: Many economists agree that the Consumer Price Index overstates the cost of living. By using a "chained-CPI," a modified way of calculating annual price hikes, we'd get a more realistic assessment. Retirees may draw fewer benefits, but the change could save the Treasury serious bucks.
• Cap discretionary spending: Many people focus on the 1990 budget agreement as when President George H.W. Bush agreed to raise taxes. But the more consequential reform was the bipartisan agreement to limit the amount Congress spends each year on discretionary programs like roads and bridges, law enforcement and health clinics. Those caps helped control such spending through the 1990s. Since then, the caps really have not been enforced. The Gang envisions a return to serious caps. Again, excellent.
