« Comparing alcohol and drug prohibition | Main | Causes of poverty »
June 30, 2009
File under misleading
Today, the U.S. ranks next to last among the 28 Organization for Economic Cooperation and Development nations in total federal revenue as a share of GDP. Our federal revenues represent 18% of national output, down from 20% just 10 years ago. That makes the mismatch between our spending and our revenue very large, producing the huge deficits we face.We'll Need to Raise Taxes Soon America has an unusually high level of government decentralization under its federalist system. As a result we also have fairly high local taxes. The total tax burden is actually fairly high. As for the best way to cut the deficit, you can plug a budget deficit with dollars from cutting spending just as well as those from raising taxes. Both create knock on effects. Me, I'll take my chances with the Keynesian multipliers and choose to costs and benefits of cutting spending rather than raising taxes.
Posted by OneEyedMan at June 30, 2009 7:45 AM
Comments
Post a comment
Thanks for signing in, . Now you can comment. (sign out)
(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)