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. For example, interest on the debt. If it were paid down quickly, would that free up more money in the economy, thereby reducing governments drag on the money supply?
Now nobody blast me. This is a question for discussion. It came up in an offline conversation I had recently. Posting it here to get a serious response.
It will be paid down if trillions are cut from entitlements.
In addition, businesses would begin hiring again which would bring in more revenue to pay down the debt further.
Unfortunately, most Freepers are still harping on something that should have happened YEARS ago. At this point, we may have to do a ball crunch to get the debt into manageable levels, but it’s not fitting with the mantra of “lower taxes.... lower taxes....” and on and on.
While as a basic principle, lower taxes IS better for the economy, but some Conservatives haven’t grasped that we are in dire traits right now in this economy. Just because THEY are doing ok doesn’t mean everyone else is. And while they shrug those folks off as ‘parasites’ and such, they should recognize that these were fine and hard working people who probably didn’t pay attention to politics as much as they should have, but it doesn’t mean they are welfare parasites either. Most would probably prefer a job, but “lower taxes” when you are barely paying a light bill doesn’t computer for the average citizen. Even if it make them angry that the average citizen could have cared less three, four, 10 years ago...
If tax inreases actually started paying down the debt, the democrats would find a way to spend it.
We have seen it time after time. Believe it.
“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.
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.