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Higher Taxes Won’t Reduce the Deficit

November 22, 2010

Stephen Moore and Richard Vedder: Higher Taxes Won’t Reduce the Deficit – WSJ.com.

Nothing like an opinion piece that so eloquently reinforces the instinctual genius inherent in one’s own writing, or in layman’s terms, these dudes from the Wall Street Journal indirectly prove I am a god.  Okay, maybe I am going a little overboard with the self-congratulation, but they do speak to something I wrote about a week ago in my post – Why raising taxes is not the solution – unless the problem is not the deficit.

Here are the first two paragraphs, please read the rest:

The draft recommendations of the president’s commission on deficit reduction call for closing popular tax deductions, higher gas taxes and other revenue raisers to drive tax collections up to 21% of GDP from the historical norm of about 18.5%. Another plan, proposed last week by commission member and former Congressional Budget Office director Alice Rivlin, would impose a 6.5% national sales tax on consumers.

The claim here, echoed by endless purveyors of conventional wisdom in Washington, is that these added revenues—potentially a half-trillion dollars a year—will be used to reduce the $8 trillion to $10 trillion deficits in the coming decade. If history is any guide, however, that won’t happen. Instead, Congress will simply spend the money.

Read more here…

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5 Comments leave one →
  1. KingShamus permalink
    November 22, 2010 12:11 pm

    Okay, okay.

    You’re a god.

    A demi-god, at least.

    • November 22, 2010 1:39 pm

      I can live with that. =)

  2. November 22, 2010 9:30 pm

    The more money you give Congress, the more money they are going to spend. Raising taxes is simply not the answer.

    • November 22, 2010 10:08 pm

      Yeah, I was amazed by the study that showed with every $1 in taxes the government spends anywhere from$1.05 to $1.13. It doesn’t matter what taxes are to these fools, they will always spend more, and we need to stop it.

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