The government really does have a spending problem only. Revenue is quite static; however the big trouble they got themselves into is their deficit spending. GDP is C + I + G +-exports basically. G (government spending) is a huge part of GDP, but government overspending is roughly 12% of our GDP. Think about that - 'fake demand' is really all it is.
If the government spends what they take in next year (which they should) our GDP will shrink 12% automatically. No one wants that - because that cycle gets worse - revenue goes down the year after and now they have to spend even less, etc...
Option 2 is what the President, most dems, and many repubs want - 'kick the can'. Now some are smart enough to know that only makes the inevitable worse. Some probably really do believe we can borrow more and more - even though to even stay at our current state we have to borrow 'exponentially' more every year. Run that through your head - to sustain our current economic situation (which isn't that good) we have to borrow at record rates - to the point where in 10 years we'll have to borrow as much as our entire country produces in one year - just to keep where we are.
Bottom line - we take the hit now and ride through it - or we ride it out until it collapses entirely.