Whats the point of having tax increases without spending cuts?
I think its more like giving more money to a heroin addict. When has government ever shown to be fiscally responsible.
- gosam777Lv 79 years agoFavorite Answer
You have to watch spending cuts. Often, both parties use it as an excuse to simply shift appropriations from one area to something they are more favorable of. There is no real cut, they simply promote what they shifted money away from, as a cut.
Spending cuts can prevent incurring further debt, if spending is truly cut. But alone does not reduce debt. Historically, raising taxes only resulted in more spending, rather than paying down or even sustaining debt. So if they are serious about reducing debt, they must do both.
The biggest problem the government faces is interest on the public debt. When the Fed stops buying government bonds in late June, it could result in substantial inflation and increased interest. Even a slight increase in interest on a $9.6 trillion debt could be a disaster (the $14.2 trillion debt includes intragovernmental holdings like SS/Medicare surplus trust funds, the public debt is around $9.6 trillion) http://www.treasurydirect.gov/NP/BPDLogin?applicat...
- Kchess07Lv 79 years ago
The private sector creates revenues. The government spends revenues. It would occur to me the government intends to continue, or increase spending by further fleecing an already struggling economy. It's the recipe for disaster the Obama Administration has adhered to, since he took office.
- Don MLv 79 years ago
If you really want to revive the economy, you should cut both taxes and spending.
President Reagan's tax cut almost doubled revenue to the treasury. The deficits he had (tiny compared to today's) occurred because spending outpaced the increased revenue.
- DanielLv 69 years ago
there isn't any point to having tax increases to pay off a country's debt, when that government has a spending problem.
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- Chewy Ivan 2Lv 79 years ago
To punish rich people.
President Obama, though, is focused on balancing the budget and helping our economy, which is why he proposed both tax increases and spending cuts. It's ridiculous for Republicans to tell the country, "we all need to make sacrifices," and then propose gouging Medicare while giving the wealthy even more tax breaks.
- regeruggedLv 79 years ago
It is pointless. Congress has shown, in the past, that they spend more than the amount of tax revenue, no matter the amount.
- Anonymous9 years ago
To raise more revenue?
(Your question is a bit like asking "What is the point of having a pay raise without spending more?"....the notion is that you apply the extra to the debt....)
Having BOTH would be better, but no-one wants to give up THEIR piece of pie....
- ?Lv 59 years ago
Ohhh we cant lay off any Federal Employees now can we ? I mean gosh we might all die or something
- GoGo GirlsLv 79 years ago
It speeds up the destruction of a nation quicker????
- stevefwbLv 69 years ago
how else will the illegals get free health care.