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At the same time, they presented their own party as a centrist steward of fiscal responsibility, showcasing the Democrats' call for a smaller tax cut, of below $1 trillion, and more money devoted to debt reduction as the responsible course for the era of surpluses.
In 10 years time, when the tax reaches $100 per ton, $10 of every $100 would be devoted to debt reduction and $90 would be given back to consumers.
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None of the existing resources of the borrower need be devoted to debt service.
"Congress should dramatically reduce its overseas commitments, as well as spending in areas like corporate welfare, and devote one-half of the savings to debt reduction and the other half to transitioning to a market system of retirement security and health care.
That faction wants to devote half the non-Social Security surplus to debt reduction, a quarter to new spending and a quarter -- $600 billion to $700 billion -- to tax cutting.
That money is going to debt reduction.
Democratic leaders, looking for a middle ground appealing to all their members, appear to be leaning toward a plan to devote a third of the non-Social Security surplus to tax cuts in the $700 billion to $900 billion range, a third to new spending and a third to debt reduction.
Open image in new window Fig. 2 Different contribution to debt reduction: Spain (1996 2007).
These link to debt reduction advice.
If history is any guide, there is no silver bullet to debt reduction.
"Some of that money can be devoted to deficit reduction," Mr. Obama told reporters.
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CEO of Professional Science Editing for Scientists @ prosciediting.com