President Obama thinks that income tax rates for people earning more than $250K should be at the same level as they were under President Clinton.
Well, all right, then. How about this as a deal? Let all tax rates return to Clinton era rates. In exchange, the Federal government returns to the spending rate, as a percentage of GDP, which was reached under Clinton. 2012 Federal spending as a percent of GDP is a bit over 40%. In Clinton’s last year, that percentage was a bit below 33%. (See chart here. .) So, reduce spending by 7% of GDP, and the taxpayers will accept higher taxes. (But the spending decrease must happen first.)
GDP is roughly $15T. 7% of that is a little more than $1T. Any takers in the Democrat Party?