I understand that fear, and until Obama took office, that was correct. Even Clinton and Carter hesitated GREATLY about spending like drunks...but this president, and his party, now, COULD CARE LESS about the size of the deficit - it simply is not hurting them, as most Americans cannot even comprehend what’s going on.
So, I think spending and revenue are totally decoupled at this point. If the Dems want to spend more, they will, regardless of whether there exists a means to fund it. So, given that - higher revenues really only mean one thing, less debt.
Now one can argue that higher taxes will slow the economy and not increase revenue, but I don’t buy it, providing that the tax is regressive enough - as taxes on the poor simply force them to stop buy cigarettes and Nike’s, and instead pay that in taxes. Increasing taxes on “the rich” has just the opposite effect, as the rich have ways to avoid the taxes.
Raising tax rates and instituting new taxes does not increase revenue to the govt. Ever heard of the laffer curve?
Thanks for the truth. I agree 100% regarding SS and Medicare being welfare. Entitlement mindset is 85% entrenched in even the republican party. I quit discussing SS years ago on FR because most can’t connect it with a wealth transfer scheme that it is. My kids future shouldn’t be borrowed against. I don’t know if the VAT is a good idea but your opinion has value with me. Thanks and keep speaking the truth!
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