If I did my research right here's the problem.
The US raises $2.45 trillion a year in taxes. 15.7% GDP.
http://en.wikipedia.org/wiki/United_...federal_budget
Government spends 25.36% of GDP
http://www.ritholtz.com/blog/wp-cont...utlays-GDP.png
So Daddy's spending more on his family than he's earning. Now does he go home and say to the family "We have to start living like poorer people." Or does he keep borrowing?
What ever he chooses will be devastating for the family. The proof of the devastation is to be soon on the news programmes. Not NY this week. Even though is FEMA a great place to cut spending or split it between States?
The only sensible way out of the mess is a multi level approach.
More taxes, less loop holes.
More long term investment in the future.
Shaving back food/oil subsidies.
Tax imported finished goods.
Sales tax.
Don't forget the Government is voted in by the people, so the people must take the blame. They kept telling you "No more taxes" and didn't stop the spending. And still the voters vote them in.
