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To: Sherman Logan
hat it will have to be made up by increasing taxes on low and middle income people

Nope. The flaw in your "logic" is the assumption that the Federal Government must be given double digit budget increases year in and year out.

It doesn't. It can, and must, get smaller. When Govt debt equals 100% GDP you MUST fix the broken tax and spend political system. You cannot just ignore it and hope the problem goes away.

64 posted on 10/28/2011 3:50:57 PM PDT by MNJohnnie (Giving more money to DC to fix the Debt is like giving free drugs to addicts think it will cure them)
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To: MNJohnnie

>> “It doesn’t. It can, and must, get smaller.” <<

.
Yes, it can, but that will require monitizing enough of the debt that the remainder can be paid down. That will have to have some inflationary effect, but how much is not predictable.


67 posted on 10/28/2011 6:02:38 PM PDT by editor-surveyor (No Federal Sales Tax - No Way!)
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To: MNJohnnie

Oh, I agree that the government must be reduced in size.

But that is a different question entirely of what the fiscal impact of a particular tax scheme is.


68 posted on 10/28/2011 6:18:32 PM PDT by Sherman Logan
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