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Originally Posted by stevo
As far as the budget deficits go, congress should spend less money. And there is empirical evidence that shows that tax cuts do increase tax revenues. it is not a straight-line formula, but more like a curve. A quote I had in my earlier post shows that this deficit is still nothing to worry about. 1 trillion may seem high, but as a percentage of GDP, it is not the highest we have seen.
http://www.npr.org/templates/story/...storyId=4800924 |
It doesn't matter if tax cuts improve tax revenue. The government is still spending more than it is bringing in, hence the word 'deficit'. A deficit has the net effect of a tax hike because the government has to raise taxes, borrow money, or print more money to pay for it (all of which either lower the value of the dollar, or take more money out of your pocket).
Deficits = Future tax hikes.
Pan, the only thing I disagree with you about is that you think we need to increase taxes to secure a balanced budget. Increasing taxes will do nothing to help the deficit as long as we have politicians that have no regard for a budget. They already have an unlimited supply of money in their minds(borrow money, print money). Giving them more money is just huring you. You want to give more money that you could be spending responsibly to a government who has shown time and time again to spend it irresponsibly.
If you had a son or daughter who ran up the debt with your credit card, would you hand them another one, or even your checking account without teaching them a lesson first. It would seem pretty foolish to me.
I think the government should learn to spend what it has before we foolishly give them more.