...and there's today's half percent on schedule....
I gotta chime in here--You're in the middle of a blood transfusion, the patient is the American economy, and everybody is suddenly worried about the blood bank. There's a time and a place for that worry, but the last time we tried to "fix" the tax codes in the middle of a Depression it was 1935 and we fell off a cliff then only to be rescued by WWII.
It was also prudent for those who were going down the stairs 9/11 to proceed in an orderly fashion. Those running full out passed their neighbors, rather rudely I may add, to safety, those that proceeded in an orderly fashion died of dust and smoke inhalation.
There's "right" and there's "correct". Cutting defense spending and entitlements is "correct". At this point in time, cutting off one source of blood to this overworked heart may just give it a heart attack. And all the Congresspeople in the world just worried about their jobs instead of the American people and common sense is what is wrong with our country, we don't have the kinds of folks at the helm who can make the hard choice of a hybrid approach. Sometimes called compromise. Sometimes called, stoke the furnace now lest it burn out, we'll farm the excesses when we have that largesse.
We should have done just that about halfway into Clinton's term, when some folks were more interested in where he put his mooohagga than where he put our money.
And Speaking of WW11, all the Keynesians were scared to death about scaling back government spending at the end of the war, which was around 50% of the economy. Luckily cooler (smarter) heads prevailed and the result of the huge roll back in government spending was a huge economic expansion. Of course being the only industrialized nation not lying in ruins certainly contributed.
Let us not forget, too, that after the government had puked all that new (and borrowed) money into existence the economy heeled over in 1938 and started to fall drastically once again. (The Bolsheviks in the Roosevelt administration were rather perplexed.) That further dispels the legitimacy of government spending being the panacea for economic growth. In fact, I feel that it more aptly illustrates that the "BIG G" that I recall from all the graphs that I saw learning to be an Economist is detrimental to expansion because it negates the "Unseen Hand" that better allocates resources.
World War II did not end the depression. If that were the case, we ought to build a #$%$ pot load of war materials and take them out into the middle of the Pacific and sink the entire lot. We'd be fabulously rich, you know.