IMF chief: U.S. needs to balance spending cuts, revenue increases in fiscal approach
WASHINGTON — The United States needs a balanced, comprehensive approach to tackle its fiscal woes that should include a mix of spending cuts and revenue increases, the head of the International Monetary Fund said on Sunday.
“My view, personally, is that the best way to go forward is to have a balanced approach that takes into account both increasing the revenue, which means, you know, either raising taxes or creating new sources of revenue, and cutting spending,” IMF Managing Director Christine Lagarde said on CNN's “State of the Union.”
Lagarde discussed her views about Washington's impending fiscal cliff, a combination of automatic spending cuts and tax increases that will simultaneously take effect in early 2013 if lawmakers cannot arrive at a deal.
President Obama's administration and congressional leaders are still trying to negotiate a way to avoid the cliff of $600 billion in tax increases and federal spending. Failure to do so could likely tip the economy back into a recession.
Lagarde cited the fiscal cliff as the biggest threat to the economy, saying America is more vulnerable to its own domestic troubles than to anything else happening in the Eurozone or China.
She told CNN she remains optimistic that lawmakers will come up with a plan before the fiscal cliff deadline.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Superstorm Sandy-hit areas in New York, New Jersey remain vulnerable
- Congress rankings detail its ‘poorest’ federal lawmakers
- WWII pilot takes off in B-29 yet again
- Hungry Yosemite National Park bears tracked by GPS
- Teacher tried to stop school shooting
- 3 Supreme Court justices offer Yale students an insider’s look at personalities
- Anti-abortion group tries to sway votes of women in Democratic households
- Officers swarm California counties as deputies killed in shooting rampage
- Chicago train riders to undergo random baggage screening
- Philadelphia Mafia figure returned to prison for meeting friend
- Hawaiians on notice over lava flow