Cutting spending vs. raising taxes

February 2, 2010

The Washington consensus is that taxes will go up sharply because there is no will to cut spending. Yet that may not be the view outside of the 202 area code.I just got back from a wing-ding at the Hoover Institution where economist Robert Hall quite matter-of-factly assumed big future spending  cuts because, in his opinion, Washington did not have the will to broadly raise taxes. Certainly, the new Obama budget sticks to the Dem pattern of only raising investment and incomes taxes on the so-called wealthy, at least transparently.

2 comments

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Yes, but we’ll have to go through the motions first: the reps negotiate a budget agreement, then raise our taxes, then we vote them out. They’re playing Russian roulette.

Posted by nonono | Report as abusive

Judging by the way they behaved during the State of The Union address, the elephants have no answers, and the donkeys are braying their usual song. So I have no confidence that the status quo will be changed anytime soon. The whole issue of spending and taxing could be rendered moot if we scrapped the whole tax code and started over. I have even written a book about it. But since I am only one person, my vote will not count, and the politicos will blithely skip off into lalaland with our tax money until the nation goes bankrupt.