This summer, the debate over how to tackle soaring deficits and debt has taken its rightful place on center stage in Washington. If left unchecked, the nation’s fiscal woes will discourage private investment, stall economic growth and job creation, lower our standard of living, and cause a serious decline in U.S. competitiveness.

Climbing out of the hole we’ve created for ourselves will require shared sacrifice and no “sacred cows.” The primary focus of a long-term debt reduction plan should be on curbing excessive spending, both discretionary and mandatory. Currently, mandatory spending categories (primarily Medicare, Medicaid, and Social Security) make up more than 55% of federal outlays and are projected to reach 60% or more of federal expenditures. To ensure that essential programs are viable for future generations, reasonable adjustments, phased in over a period of time, must be made to entitlement programs.

Raising revenues must also be part of the deficit reduction equation. The most reliable and sustainable way to increase revenues is through a growing economy that employs more people and supports more profitable businesses. Washington can help by reining in regulations, expanding trade opportunities, and making much-needed targeted investments in infrastructure.

Government coffers could also be augmented by tapping more of our nation’s vast natural resources. Numerous inactive offshore oil leases could generate an estimated $1.7 trillion over the next 10 years. Similarly, natural gas reserves, shale gas plays, and national forest lands ripe for timber harvesting are potentially significant sources of federal revenues.

Only after spending cuts, entitlement reform, and revenue enhancement through economic growth and resource development have been fully explored should tax revenues be considered—and, then, only as part of comprehensive tax reform that broadens the base, lowers rates, and makes our tax code simpler and more efficient, transparent, and competitive.