Even if we don’t cut spending, we’re all going to have to pay more taxes later in this decade just to cover the interest expense on our massive federal debt accumulated through spending that has already occurred and can’t be revoked. So for the first time in my memory, I agree with Howard Dean on something. Howard, you’re right about this. There’s no way out of higher taxes later in this decade either through visible taxes or through inflation. It’s a done deal. The die is cast. We can’t unring that debt bell. The first tax increase should be to limit total itemized deductions (other than charitable contributions) to $100K. At this time, the federal government can’t afford to be subsidizing $4 million mortgages on luxury homes with $200,000 mortgage interest deductions.
Correction to post 18—that should read:
Even if we cut spending, we’re all going to have to pay more taxes later in this decade just to cover the interest expense on our massive federal debt accumulated through spending that has already occurred and can’t be revoked.
Cut taxes, and then cut some more!
http://capitalgainsandgames.com/blog/bruce-bartlett/1701/jude-wanniski-taxes-and-two-santa-theory