Tax Increases vs. Spending Realities

With the fiscal cliff standoff having reached its disappointing conclusion, it is time for conservatives to once again make their case to the American people that spending reductions are key to a better America. Unfortunately, The New York Times' editorial page has already jumped to the defense of just the opposite -- tax increases that will be used for more "investment" by the federal government. According to the Times, spending really isn't causing current deficits. The problem is a lack of tax revenue: The main problem is that the current tax code is incapable of raising the revenue needed to pay for the goods and services of government. Over the last four years, federal revenue as a share of the economy has fallen to its lowest level in nearly 60 years, a result of the recession, the weak recovery and a decade's worth of serial tax cuts. Even with deep spending cuts, the chronic revenue shortfall is expected to continue, swelling the federal debt - unless taxes go up. To...(Read Full Post)