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
- Mom charged in girl’s death in line for $1M from her trust fund
- New heart failure drug works much better than current treatment, study finds
- University of Wisconsin researchers work to customize vegetables for specific uses
- Rosa Parks’ apartment in Montgomery, Ala., hit by copper-seeking thieves
- Cleveland welcomes server farms
- Astronomers get look at birth of huge galaxy
- Border Patrol agent opens fire on armed militia member in Texas
- Obama backs off immigration vow
- Pilot in Atlantic Ocean crash lost consciousness, Coast Guard says
- Suspected serial stowaway arrested in Ariz.
- California governor appeals ruling that struck down schoolteacher tenure