My Fifteenth Theorem of Government points out there is an “unavoidable choice” between entitlement reform and tax policy.
Fifteenth Theorem of Government: Anybody who opposed entitlement reform is unavoidably in favor of big tax increases on lower-income and middle-class Americans.
Simply stated, the folks who oppose fixing entitlements – including so-called national conservatives and politicians such as Donald Trump – are in favor of giant tax increases on lower-income and middle-class Americans. They don’t admit their support for huge tax hikes on regular people, of course, but that’s the inevitable outcome if fiscal policy is left on autopilot. Even Paul Krugman admits that’s what will happen.
This process already is underway in the United Kingdom. The Conservative Party became recklessly profligate under Boris Johnson, causing a big bump in the country’s (already excessive) spending trajectory. And bad spending policy is now leading to bad tax policy (the British pound no longer is the world’s reserve currency, so there’s not as much ability to finance ever-expanding spending by endlessly issuing new debt).........But today’s column is a warning sign about what will happen in the United States if Republicans surrender on spending and entitlement programs are left on autopilot.
I won’t pretend that genuine entitlement reform will be politically easy. But my message to my Republicans friends is that a tax-increase agenda is not just economically destructive, but also politically suicidal.........To Read More....
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