The single best policy action that the lame-duck GOP Congress can do right now is to vote in a spending pay-go limitation with balanced budget targets.
Spending limitation pay go simply means that any increased spending must be offset by reduced spending in some other area of the budget. Not higher taxes, but reduced spending.
This would send a clear message to disaffected Republicans and independents (Ross Perot voters) that the GOP is moving to regain the high ground on limited government and budgetary restraint.
The Democrats are pushing a revenue pay-go. This means somewhere along the line, they’re going to raise taxes to finance roughly $75 billion of new spending on health, education and other areas.
Republicans must signal that they learned a lesson from their midterm election defeat. Show voters that the GOP is moving back home to its small government roots.
A balanced budget spending limit at low marginal tax rates should be the GOP mantra.
They should start immediately. Right now—during the lame-duck Congress.