“Won’t any action to create jobs—whether through spending or tax cuts—increase the deficit and add to the debt? Yes, of course, but we can afford to do that if the immediate actions are part of a legislative package that stabilizes the debt by reforming and simplifying the personal and corporate tax codes, reducing the rate of growth of Medicare and Medicaid, and putting Social Security on a firm foundation. Variations of such a “grand bargain” were recommended by the Simpson Bowles Commission and the Domenici Rivlin Task Force. Indeed, any serious bipartisan group seeking to stabilize the debt is forced by the arithmetic of the situation to a similar solution. The President’s speech yesterday voiced his clear commitment to the double strategy of creating jobs and reining in future deficits.”
Read Rivlin’s full testimony here.