Quote:
Originally Posted by Mutt
Not sure I understand this - tax increases bring revenue in - how is that a bad thing when you are paying off huge debt?
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Just to make sure "defered tax increase" is understood correctly:
The reoublicans actually raised taxes every time they claimed to lower them these last 30 years.
What they did was lower tax collections, while keeping spending the same or increasing it dramatically.
Then they borrowed money to cover the gap.
The centrists (Clinton and Obama) did much the same. Clinton's appearance of budget success was an illusion, based on bubbles and the beginning of "free trade", with it's early benefits and deferred costs, just as Bush the lesser appeared to benefit for a while because of the war bubble, the lending bubble, and the housing bubble.
When you lower collections, and borrow the money that would have been collected, you have RAISED taxes, because the borowed money has to be paid back with interest.
It's a defered tax increase. You get the benefit of tax increases but pay for them later. And whoever loaned the country money gets to skim cream off the top.