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To: Ghost of Philip Marlowe

And if taxes are raised, expenses will go up at a higher rate against the promise of new revenue. If a government has a deficit of 5% and raises taxes to cover that % the legislature will raise outlays to cover a multiple of the amount of the projected new revenue which then comes in at a fraction of the projection.


20 posted on 02/21/2008 5:13:35 AM PST by arthurus
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To: arthurus

This also explains the pohenomenal increase in college and university spending since 1980 and the subsequent rise in tuitions.


346 posted on 02/22/2008 9:27:04 AM PST by RobbyS
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