“Obama told Cantor that he would either have to agree to tax increases or give up on his demand that the debt hike be matched dollar-to-dollar to the cuts — that is, $2.5 trillion in deficit-reduction over 10 years in exchange for a $2.5 trillion hike in the debt ceiling.”
Since we’re running up deficits of $1.5T per year,and, at best project dropping that to $800B per year, we’ll run through a $2.5T increase in the debt ceiling in 2-3 years. So why do we talk about 10 year deficit reductions?
I agree. Over 10 years, 2.5T would probably be only a 10% reduction in deficits. We’ll add $22.5 Trillion of new debt instead of $25.0 Trillion.