Monday, October 23, 2017

The Tax Reform Is Guaranteed to Fail

Here's why I think tax reform/tax cuts will not really work without spending cuts:
Spending right now is not capped. It's growing. So if spending keeps growing, you can't really cut taxes and not go further into debt. Now, let's suppose that you have very low interest and for a while it won't matter. What this means, however, is that people will come up with new programs because they will feel liberated by tax cuts IN ADDITION to the already uncapped spending. Some of these programs will inevitably require the raising of taxes to pay for them. And so this will never end, UNLESS:
1. You cut entitlement programs - severely
2. You cut the pork from defense budget - and there's a lot of garbage to cut without going into anything that would actually harm our military capabilities
3. You cap spending.
Unless you do all of these things at least to some degree, no tax cut in the world is going to work, or at least won't work in the long run. It may still provide a temporary relief and help individuals on some level. But eventually, the taxes will inevitably be raised.

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