If it’s late summer, it’s “grand bargain” season – and President Obama rolled out the latest sequel in the franchise Tuesday. The new iteration is decidedly less grand than previous ones; instead of a massive and politically painful swap of tax increases for entitlement cuts, it would lower corporate tax rates a bit to fund some one-off infrastructure spending. And that makes perfect sense as the bipartisan consensus on the need for dramatic deficit reduction has collapsed under the weight of changing reality.
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