Breaking the debt-limit impasse

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This week, the most abused word in Washington has been “impasse.” Prospects for a deal between President Obama and congressional Republicans on raising the debt ceiling are appearing increasingly grim as Aug. 2 nears, the date of the promised debt-pocalypse. Republicans want real spending cuts in exchange for raising the debt ceiling, and Democrats say they will only accept spending cuts if coupled with tax increases on wealthier Americans. These differences seem unbridgeable, but there are multiple measures that could help foster a deal.

The most obvious bipartisan compromise would involve expanding means-testing within the nation’s entitlement programs. Medicare already contains elements of means-testing, but raising premiums and co-payments on wealthier beneficiaries is one possible way to save money within the program.

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