Fact: Tax revenues are falling due to the economic downturn.
Fact: The bailout/stimulus package will create the largest deficit in U.S. history.
Fact: The bailout/stimulus must be paid for.
In discussing the incoming Obama administration’s next planned stimulus package, The Wall Street Journal had this to say:
“Whether or not you think new spending will stimulate the economy, the one undeniable truth is that this money has to come from somewhere, which means that it is borrowed or taxed from the private economy. This spending blowout is all but guaranteeing huge future tax increases, and anyone who thinks only the rich will pay is living an illusion. Taxpayers need some new champions in Washington — and fast.”
The Wall Street Journal’s Opinion Journal article titled “The Deficit Spending Blowout” which is a doom and gloom forecast for future government spending.
Congress will needs its own stimulus package to pay off this huge deficit, so they will almost certainly have to raise taxes. The IRS is not going out of business anytime soon.
In addition, you can enjoy this Wall Street Journal video which discusses the likelihood of tax increases.
What is your opinion?