The first is whether the problem should be addressed via spending cuts or tax increases.

The sane answer is both.

Federal government spending recently surged over 20% of GDP, higher than it has been for most of the past century (see Chart 1). Barring a massive surge in GDP growth, or huge reductions in social-program spending (Medicare, etc.), federal spending will remain too high to offset merely with tax increases. So spending has to be cut.

Federal Government Spending As Percent of GDP

Chart 1: Federal Government Spending As A Percent Of GDP

Image: US Government Revenue
Tax revenue, meanwhile, is running below the bottom of its long-term range of 15%-20% of GDP (Chart 2). So, barring truly massive spending cuts, which seem politically unfeasible, tax revenue needs to increase.