"Income vs. Debt 101...For Russians!"
>>"Do you honestly mean to intimate that taxes are good for us, from an economic point of view?"<<
If the books don't balance you either cut your spending, or increase your revenues! So yes, taxes can be good or bad, just like spending cuts can be good or bad...it all depends on the circumstances! At that time, it would have been a grave mistake to cut back on our spending and investing in ourselves as a nation!
>>"Silly me, I always thought just the oposite. Somehow, I also got the erroneous idea that, if the country is running a chronic deficit, it must be spending irresponsibly. Guess I was wrong, huh?"<<
Well not totally wrong, just seeing one side of the coin! If the country is running a chronic deficit it EITHER means that spending is out of control, OR that revenue has decreased relative to anticipated expenses! We as voters don't like admit that we may have borrowed and promised too much, to too many, for too long...at some point cutting winds up slicing into muscle instead of fat and it then becomes necessary to increase revenues! Yea I know, under certain circumstances tax cuts tend to expand revenue, but tax increases for short periods can bring in immediate income without hurting the economy longterm!
Star. |
