Tax increases or massive defense cuts?

That appears to be the choice the Democrats are giving the Republicans in the debt talks. The Hill: National security spending could be cut by as much as $700 billion in a deal to raise the debt limit, defense sources said. That's almost twice the amount President Obama originally proposed. Obama directed the Defense Department and other national-security agencies to slash $400 billion by 2023. But in the closed-door talks to raise the debt ceiling, larger Pentagon funding cuts have been seriously discussed, several sources said, putting the number between $600 billion and $700 billion over a decade. A final decision has yet to be made, but the sources said negotiators have not ruled out making deeper cuts than Obama planned. As the Aug. 2 deadline for defaulting on the debt approaches, GOP members have dug in and said any accord cannot include tax hikes. Sources told The Hill recently that GOP negotiators are ready to break with recent Republican ideology by trading large defense...(Read Full Post)