Monday, August 8, 2011
A sound approach to the debt/deficit problems
Charles Krauthammer outlines a sound approach to dealing with the debt and deficit. The first step is revenue-neutral tax reform, which would broaden the base and dramatically lower marginal income tax rates for people and corporations. Once we have a non-insane tax structure, we can than begin the discussion of cutting spending vs. raising tax revenue. My personal opposition to raising any additional tax revenue is largely because the tax system is so onerous that a dollar in additional taxes is probably not worth it in terms the costs that it imposes on the economy. I also think that the government is far too involved in the economy, but that is a different question. Make our tax system less onerous through tax reform (which seems to have bipartisan support), and then we can have the grand debate about the proper role of government.