Pat Lynch: We need to bring tax rates back up for Rich (Real Cause of Deficit Pt 10)(If you love Milton Friedman then you will love this post)

The liberal Pat Lynch in his article “Worry Inc.” Arkansas Democrat- Gazette, April 4, 2011 commented:

While the budget cutters are busy going after programs that help mere citizens, any notion of bringing taxrates for the wealthy back to the levels of the Clinton era, when there was a federal surplus, is off the table.

Liberals always think they can raise the taxes on the rich and everything else will take care of itself. The problem with our deficit is not that the politicians need more money but they need to spend less. I heard Congressman Tim Griffin say that at a townhall meeting a couple of weeks ago.  

Brian Riedl is the author of the article “The Three Biggest Myths About Tax Cuts and the Budget Deficit,” (Heritage Foundation, June 21, 2010), and the next few days I will be sharing portions of his article.

Before coming to Heritage in 2001, Riedl worked for then-Gov. Tommy Thompson, former Rep. Mark Green (R-WI)., and the Speaker of the Wisconsin Assembly. Riedl holds a bachelor’s degree in economics and political science from the University of Wisconsin, and a master’s degree in public affairs from Princeton University.

Growing long-term budget deficits are exclusively the result of rising spending, not declining revenues. Thus, common sense suggests that most reforms should occur on the spending side. Given the magnitude of the long-term spending increase, even splitting the difference between spending cuts and tax increases would leave the highest sustained spending—and tax burden—in American history. Permanently transforming the federal government in this manner would slow economic growth and harm families and businesses. 

Rapid growth in Social Security, Medicare, and Medicaid costs and interest payments on the national debt will cause virtually all of this new spending. The annual cost of these four expenditures will surge from $1.6 trillion this year to $3.5 trillion in 2020. This will cause massive budget deficits in the next decade and must be the focus of any serious effort to reduce the budget deficit.

Obviously the real problem is spending and not that taxes are not high enough!!!! Take a look at this clip from Milton Friedman:


An ever-combative champion of freedom, Milton Friedman’s career and contributions in defense of individual liberty are unique in our time


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