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To: Kevin in California

Any increase in national debt is by nature a tax increase. All debt must eventually be paid by tax revenues. The amount tax revenues must increase, in present value terms, is equal to the increase in the debt. Debt = taxes. Law of Economics.


111 posted on 08/01/2011 11:39:10 AM PDT by Thane_Banquo
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To: Thane_Banquo

Please.

We borrow 40 cents on every dollar we spend.

That can’t last forever, but the answer is not that automatically debt = taxes.

Money can be printed. It’s called “monetizing” the debt. Not a good option, but an option nonetheless.

The economy can unleash growth and tax revenues would roll in without a tax increase. A properly constructed tax cut such as in capital gains, etc, has been a proven automatic revenue increaser. Any increase in revenues does not have to be spent and would therefore be available to balance a budget and pay down debt.

Please.

Get a grip.


148 posted on 08/01/2011 11:55:04 AM PDT by txrangerette ("...HOLD TO THE TRUTH; SPEAK WITHOUT FEAR." - Glenn Beck)
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