Skip to comments.Debt ceiling: Key Republican bolts debt ceiling talks (RATS demand tax increases)
Posted on 06/23/2011 10:19:18 AM PDT by Libloather
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“I agree with you but ask this question for discussion purposes: Is there a point where a government financial crisis is so bad that an increase in taxes in necessary.”
Sure. A war, for example, would be an unexpected increase in expenses that might require a TEMPORARY tax increase in order to fund. There would still be negative consequences on the economy, but if a tax increase is temporary and the public clearly knows what it is needed for, then at least there is not this dreadful uncertainty about what the government will decide to hose us on next.
The current “government financial crisis” is a lot different than war debt though, since it was foreseeable and completely self-inflicted. If we have to raise taxes TEMPORARILY to get out from under this debt, I would support it, but ONLY after we have cut as much waste out of the federal budget as we possibly can, and put measures in place to prevent this from ever happening again. The government brought this mess about, so they should be the first ones to feel the pain from any belt-tightening, before they ask the American public to pitch in.
BTW, it seems to me that politicians will always prefer debt spending vs temporary tax increases, if they are allowed to do it. With debt spending, they can pass on the burden of paying for things to the next crop of politicians, instead of having to answer for raising taxes to their constituents back home.
Why even post anything from Yahoo they are further left than moveon.org...it amazes me that anyone even reads the crap they post
Understand that any tax increase is going to reduce economic activity. Money that the government confiscates, for whatever reason, is not available to the private sector for investment in economic growth.
Consequently, no tax increase should be considered until the economy is relatively healthy -- when it can withstand a downtick.
Speaking of tax increases now is nothing less than insanity. Or malevolence.
Then its about time everybody works extra hard pointing out that lower taxes and less regulation is exactly what will get businesses once again in the mood to expand and start hiring. Right now businesses are holding back because they dont know what is coming. The regulations in place increase their costs as well as the uncertainty of what taxes etc will be cause them to hold back.
If those you know want jobs again they had better be calling their Congress Critters to NOT increase taxes and reduce the regulations and make it easier and more profitable for businesses to expand.
Dont underestimate Cantors tactic on this. If, for some reason, there are any increases in taxes he MUST make sure that Obama owns it. He is forcing Obama to own both an increase in the debt ceiling and any increases in taxes.
Where does interest paid on the national debt (or any government debt) play into the drag on the economy? In other words, if there were no interest payments on the debt, would that free up more money for the private sector?
I guess the question is, can the debt rise to such a problem level that even though a tax to reduce would be bad for business, so to speak, is there a point where that would be better than the alternative.
All this presupposes that the money would actually be used to reduce the debt, over which I have no confidence that it would be. We are speaking hypothetically here. And please, again, do not confuse my raising these questions as my taking a position in favor or higher taxes. I've already got a sunburn from golf today. I am not looking for a further roasting.