Tuesday, December 11, 2012

Americans Don't Need Higher Taxes. But They Do Need an Honest Appraisal of their Choices.

The title of Ezra Klein’s latest Washington Post column announces that “Yesterday’s tax revenues can’t support tomorrow’s America.” The piece makes the case that tax revenues will have to increase from their historical average of about 18 percent of GDP in order to support higher health costs and an aging population.
But you could just as easily make the argument in reverse: An honest look at the history of America’s federal revenues strongly suggests we can’t afford the same level of health and retirement benefits into the future. To put it another way: Historical tax revenues can’t support projected increases in entitlement spending.

Read more: http://reason.com/blog/2012/12/07/americans-dont-need-higher-taxes-but-the

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