Crapo Fix: More Cuts, Tax Reform

Sen. Mike Crapo called for additional debt reform after the market freefall on Monday, a tactic he described as necessary to stabilize the economy. The Idaho Republican said a swift response from Congress is necessary in the wake of Standard & Poor’s decision to downgrade the country’s credit rating from AAA status Friday. “I am very worried about it,” Crapo said. “We are obviously seeing in the stock market today the reaction to it.” On the first day of trading since the downgrade, the Dow Jones Industrial Average fell by more than 600 points, or 5.6 percent. The Associated Press reported it was the sixth-worst slide for the Dow in more than a century and the worst day for the market since December 2008. In order to minimize the damage, Crapo called for new spending cuts and widespread tax reform/ Twin Falls Times-News . More here.

Question: Is Crapo right re: the steps needed to fix financial crisis at this point — new spending cuts & widespread tax reform?