We have to put the country back on the path to fiscal sanity, the author writes. Close the tax loopholes

After watching Standard & Poor’s performance in the Enron and housing debacles, it’s hard to stomach their decision to downgrade America’s credit.

But even coming from S&P, there is a message we should hear: The finger pointing and hyper-partisanship has to stop. If it doesn’t, we really will be on the road to ruin.


Democrats need to see tea partiers as something other than debt-limit hostage-taking Republicans. And Republicans need to see President Barack Obama and Democrats as something other than big-spending socialists.

We’ve got to stop this attack madness. We have to bring civility back to the public square. We have to put the country back on the path to fiscal sanity.

To do that, we need to cut some $4 trillion to $5 trillion. We made a down payment on this with the $2 trillion dollars we cut just last week. Now we need to go further.

To understand what we have to do, though, we first need to look at how we got here.

We went from a $236 billion budget surplus in 2000 to a $1.3 trillion deficit last year — and a record $14 trillion debt.

A huge chunk of the debt comes from the wars in Iraq and Afghanistan. We’re bringing the troops home.

Another significant piece stems from the Bush-era tax cuts. Warren Buffett, chairman and chief executive officer of Berkshire Hathaway, says the tax cuts for the wealthy should be left to expire. They’re set to do so at the end of next year. We should let that happen.

Agree or not, don’t you think most Americans were better off before the tax cuts than they are now?

Much of the rest of the debt comes from the economic downturn since 2008.

That brings us to today. And there’s no mystery about what we have to do. It’s just common sense. In addition to the spending cuts Congress just made, we need tax reform.

And by tax reform, I mean closing loopholes, special interest tax breaks and corporate subsidies. It’s just plain wrong to be protecting tax breaks for oil companies and to be rewarding businesses that ship jobs overseas.

As chairman of the Senate Finance Committee’s Fiscal Responsibility and Economic Growth Subcommittee, I’ve scheduled a hearing for early September to investigate closing many of these loopholes. Doing so will likely generate $2 trillion over the next decade. Add that to the $2 trillion in spending cuts we’ve made — and we’re in the $4 trillion range that we need to hit.

It’s time to stop the shouting and bickering and political attacks. It’s time to show the world that America can take care of business.

Sen. Bill Nelson (D-Fla.) is a member of the Senate Finance and Budget committees.