"The case for a tax increase…is a persuasive one." Although the U.S. had run deficits in nine of the previous 10 years, "the sheer size of the one now confronting the nation is fearsome."
Current deficits run bigger, in terms of GDP, than they did half a century ago. Can you imagine our president or any member of Congress proposing a tax increase?
Life also mentions the need to restrain high inflation? How high? Three percent, a level today's fiscal engineers seek to promote.
You're right, Dorothy. We're not in the 20th century any more.
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3 comments:
We don't have a revenue problem, we have a spending problem. Chop the spending, and the deficit disappears.
How is this a bad plan?
You might seek the answer close to home, in Connecticut. Spending cuts are unpopular and sometimes unwise.
Spending cuts are only unpopular with those who are sucking at the government teat and will lose out, Unfortunately, when that is a majority of voters, yes, that become almost impossible.
But why would spending cuts be unwise?
CT has more state employees per capita than most other states, and the average pay for them is the highest in New England. The number of state employees is not going down as the population shrinks. Despite the dramatic fall in tax revenue, spending has never gone down during the Malloy administration. What are we getting for all this spending? A collapsing state economy, with major employers fleeing to NY and MA.
And as icing on the cake, the worst DMV by far that I have experienced in any state--MN, MA, and VA were all much better.
The worst part is the extravagant pensions we are paying to former state workers, and no one is doing anything to reduce that future obligation.
All because spending cuts would be "unwise"?
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