I'd rather see tax increases and budget cuts except in times of war. Of course, we're in a time of war right now so... I just trust the military leaders to know how much it'll cost.
When it comes to tax increases I suggest they be focused as much as possible to interests who make money on the American people but have figured out ways to avoid paying American taxes.
Budget cuts should largest extent possible avoid cuts in education, scientific research and things that enhance economic growth.