03/05/2012 11:12 am ET

Why America's Fiscal Situation Should Soon Shine Brighter

Still, there are grounds for fiscal optimism, even considering what is politically feasible. The Bush-era tax cuts expire at the end of this year. Extending all of them would increase the 2021 deficit by nearly 3 percent of GDP. Allowing them to lapse, then, would be a big fiscal adjustment in the right direction.

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