Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

To: LD Jackson
Here's a serious proposal: We will give you $1 in tax increases in 2014 for every $1 in actual spending cuts realized by the end of 2013. Additionally, any 2014 tax increases will automatically revoke for 2015 by the amount spending increases in 2014.

The problem is not with raising taxes per se. The real problem is that the tax hikes will not be used to actually reduce debt, they will simply be spent, and if past history is any indication, they will be spent at multiplier greater than one.

For every major tax increase since the imposition of the Federal income tax, on average Congress has raised spending by $1.40 for every new $1.00 in increased taxes. Raising taxes by $1.6 trillion implies we will increase spending by $2.24 trillion in addition to the automatic baseline increases already on tap.

This doesn't include any decrease in economic activity from tax hikes, only the static analysis of past political performance.

Conclusion: cut the spending UP FRONT. Then we'll talk about taxes.

8 posted on 12/01/2012 10:35:53 AM PST by FredZarguna (Nothing against Paki's. Just paraphrasing Biden. Or Hillary. Or Both.)
[ Post Reply | Private Reply | To 1 | View Replies ]


To: FredZarguna

Fred-that’s about as serious as “Build the fence first.”


11 posted on 12/01/2012 10:54:29 AM PST by DIRTYSECRET
[ Post Reply | Private Reply | To 8 | View Replies ]

To: FredZarguna
no kidding...I'm still waiting for the RATS promised TEFRA spending cuts, made to Ronald Reagan.
14 posted on 12/01/2012 11:31:57 AM PST by stylin19a (obama -> Fredo smart)
[ Post Reply | Private Reply | To 8 | View Replies ]

Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson