Death and Taxes

Someone (Ben Franklin?) once said "Nothing in life is certain but death and taxes."

Taxes again, I know. No one wants to pay them. But David Stockman, who advised Ronald Reagan in the early 1980s, has some strong reasoning behind his position we need to raise them. http://www.cbsnews.com/8301-504803_162-20021193-10391709.html

When the medicine comes in the form of a VERY bitter pill, that is NOT a good reason not to take it.

It could well be that only by cutting core programs (the military and entitlements) and raising taxes, will the U. S. economy be able to drag, pull and shove its way back to economic health.

Percentage wise, the wealthiest will have to pay the most. The poorest the least. Why? Because it is a very bad idea to tax citizens into starvation and homelessness. The middle class will probably suffer the most. They are dwindling in numbers, but still have some disposable income.

None of the choices are easy or pleasant. But Keynesian economics calls for increased spending in times of economic hardship, you argue? True, but Keynes also said spending and debt should be trimmed in times of prosperity. This we did NOT do. The unhappy result is staring us in the face - massive public debt, massive public need for stimulus and far less than nothing in the piggy bank.

Across this country states are facing bankruptcy. Most of the current job losses are in the public sector as teachers, firemen, policemen, highway workers, water and sewage workers, trash collectors, regulators are being laid off. These cuts are slicing through the heart of our infrastructure, whether we acknowledge that or not. Public assets are being sold for one-time cash boosts. Any old Yankee would tell you, NEVER unload your capital, but that is what state and local governments across the country are doing.

If someone out there has a better idea, one that actually has a solid chance of working, now is the time to express it.

The money has to come from somewhere. Of course, we could emulate the Roman Empire and try conquer our way back to wealth. Not sure how well that would work.