My point is that a strong economy will produce the tax revenues need to begin to pay down the deficit particularly if spending is significantly reduced.
On additional point is well worth making and that is the system of taxation needs to be completely overhauled. It is my understanding that it costs more to operate the IRS than the actual revenues contributed to the Treasury after that cost is paid. If that is even remotely true, there is a huge opportunity to reduce spending right at the beginning of the revenue production mechanism.
Early in my career, I worked with a large CPA firm in their tax practice. The tax regs were a mess then...I can only imagine what they look like now.
Bottom line: bad tax policy means inefficient allocation of capital and that is detrimental to economic growth.
More accurately, you pay down debt, but lower or eliminate the deficit.
Thanks for the reply. I agree with you that pro-growth policies, reduction of the deficit and taxes, and energy exploitation are the only way to go. I’m not sure it would be enough, and I don’t know if we can even get those things, even if we win in 2012. But it’s all we can do.