Eight Problems with a 'Balanced' (Tax-Raising) Approach

Everyone this side of Paul Krugman agrees we have a government debt problem.  A reasonable man might ask whether we solve it by cutting spending, raising revenue, or some mix of both.  The supposed "balanced" approach is, of course, some mix of both.  When the two parties can't agree, we good democrats (small "d") say split the difference. The Simpson-Bowles deficit commission did exactly that.  That commission focused on the years 2015 and up, in which revenues were projected to be 19% of Gross Domestic Product and spending was projected to be 23% of GDP.  So the commission played Solomon and simply said both should be 21% of GDP.  The happy medium (and median, in this case) would then be struck and we would live happily ever after. There are a few things wrong with that picture. Problem 1.  It's not 2015 yet.  The Simpson-Bowles' 2015 was pure projection, a collection of assumptions thrown into somebody's computer.  In the real years that...(Read Full Article)