At the New York Times, Peter Coy makes a convincing argument that the only way to address the deficit is to raise revenues, or in human terms, raise taxes. Of course, money already spent by the government has to be paid for, eventually, even if it was spent on things we would have preferred it not be spent on. Going forward, it would be nice to think that money will be better, more wisely, more effectively spent, but what are the chances of that happening? And so, future expenditures will have to be paid for as well. By taxes.
You don’t hear this from either Republicans or Democrats because calling for higher taxes is seen in Washington as politically fatal. As I said, it requires imagination. When you step back from the daily tit for tat, it’s hard to imagine any way to fix the nation’s finances in the long term that doesn’t involve more tax revenue. As Sherlock Holmes said, “When you have eliminated all which is impossible, then whatever remains, however improbable, must be the truth.”
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