From Ace of Spades:
Obama's not going to cut taxes for the middle class. He has created a staggering, unprecedentedly large, jaw-dropping, eye-popping structural deficit that can only be reduced by going where the money is: The middle class, which has both the huge numbers of tax-filers to make a difference, as well as enough money to pay more.
The poor have the numbers but not the money, the rich have the money but not the numbers. Only the middle class has that wonderful combination of big numbers and ample income.
Yes, it's coming. As the ship's architect said in Titanic about the sinking of the ship: It is purely a simple mathematical problem at this point with only one solution. "It is made of iron; I assure you, it will sink."
4 comments:
I am not worried about the deficit. It is big enough to take care of itself. - RR
Sure, President Reagan would have preferred to minimize the deficits by eliminating wasteful spending. However, the only way to persuade a Democratic Congress to accept a defense buildup and pro-growth tax cuts was to agree to their domestic spending demands.
Ironically, the 1980s budget deficits made the 1990s surpluses possible. The budget was balanced by surging tax revenues from a booming, low-tax economy and defense savings brought on by the end of the Cold War.
And this too: As a percentage of the GNP the Reagan deficits were actually quite low - much lower than those shown on the chart with this post.
I'll have to finish the books I'm reading about Reagan and his administration before I start to compare the context and the impact of fiscal policy between then and now.
That quote just stuck in my head last night.
I'm impressed that you're studying the history and I look forward to discussing this with you.
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