President Barack Obama and the Democrats want to increase taxes to reduce the deficit.
We might even get a VAT sales tax which is being billed as a "deficit reduction sales tax."
Wow, that makes sense. Get more money into Washington and reduce the deficit - a deficit which puts our children and grandchildren in debt forever. We've got to be in favor of that, right?
Take a look at history. In the late '80s and early 90s a group of economists from Ohio University conducted a study for the Congressional Joint Economic Committee. They looked at tax receipts and expenditures every year since World War II. Their findings? For every dollar of tax collected, Congress spent $1.58! (It would be nice if we could all run our household budgets that way.) "Subsequent revisions of the study over the next decade found similar results."
If history is our teacher - and she's a good teacher - then increased tax receipts are only going to make the deficit worse - not better. Congress won't use those additional funds to pay down the deficit, they'll just spend it - probably on more entitlement programs to make more people dependent on the government.
The answer. Cut taxes and let the business community go to work. It worked for JFK and Reagan and it will work again.
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