There are very few things everyone in Washington can agree on these days. But the one notion that will get heads nodding across the political spectrum is that today’s fiscal policies simply are not sustainable. If we keep doing what we’ve been doing, not only will the federal budget stay permanently deep in the red but critical public investments such as education and infrastructure will continue to go underfunded. Key national priorities such as strengthening the middle class, reducing poverty, and building a world-class infrastructure will remain unaddressed. Income inequality will continue to rise, confidence in America’s ability to govern its fiscal affairs will continue to fall, and sooner or later we will find ourselves struggling through another economic crisis. Clearly, these are all outcomes that we must avoid. That is why nearly everyone—left, right, and center—agrees that changes in fiscal policy will be necessary.
This is very true, changes in fiscal policy are necessary. Of course, we know the solution of the Marxist/Progressives and they outlined it. Here it is.
Current federal revenue levels are at their lowest levels since the 1950s. And the assumption that all of the tax cuts scheduled to expire at the end of this year will continue is the single-largest reason why budget experts expect federal deficits to remain far too high over the next 10 years. Clearly we have a big revenue problem. When thinking about where the revenue we need should come from, the starting point should be that our tax system must be progressive. From Adam Smith down to today, it has been a long-recognized principle that those with higher incomes should pay a higher share of their income in taxes because they have the ability to pay and have benefited the most.
Their solution is and always has been to tax and punish the very people who create economic prosperity. Economic prosperity has always raised revenue flow to the federal government. John Kennedy and Ronald Reagan understood this. They proposed a cut in the progressive income tax system and the economy roared. This has always been the case. The idea of taking money from an investor and creator to pass out to takers does not provide nearly the multiplier effect that the same money invested in business will produce. Marx understood in a strong economy, those who produce will receive more. He said this is wrong, that all should be equal. He also said for a person to have more than one needs causes an inequality and only conformity and total equality can be tolerated. This practice, the one advocated by the Marxist/Progressives, has always damaged economies and in so doing hurts the very people they claim they want to help.
Yes, we must solve the problem of deficits. Lower taxes and reduce regulation and allow American ingenuity and entrepreneurship to flourish.