The main driver behind long-term deficits is government spending'not low revenues.While revenue will surpass its historical average of 18.0 percent of GDP by 2021, spending will shoot past its historical average of 20.3 percent, reaching 26.4 percent in the same year.
Shhh... no one tell the Democrat Party, which has come up with an original plan for America to regain its fiscal health.
More spending and higher taxes.
The spending curve closely matches the "Rahn Curve" that documents how tax revenues decrease when tax rates rise above about 20%. In fact, when tax revenues are plotted against tax rates, it seems that revenues reliably maintain about 20%.
ReplyDeletesee:
http://hotair.com/archives/2010/06/30/video-the-rahn-curve-and-the-albatross-of-too-much-government/
Allow me to add that conservatives spend a lot time trying to convince big spending socialists that when tax rates are lowered, government revenues increase. I would remind these well-meaning people that the bigger the government, the less liberty there will be for its citizens.
ReplyDeleteThis government, above all others on earth, was founded to "secure the blessings of liberty", not to achieve maximum sustainable size. We are to seek maximum liberty, not maximum government. Stop making common cause with socialists in tuning the tax rates. Start slashing government whenever the opportunity presents itself! And above all, slash government that benefits the left and those who advocate bigger government!
Gee Whiz !!!!!
ReplyDeleteLook at 2008 !
I wonder if that was just a coincidence???