The media is playing up the current debt cieling debate with the Dems and their media sycophants claim that you need to increase taxes to solve the problem. Well, let’s look at the two extremes of the argument.
As is quoted on a lefty blog Alternet, the net worth of the 400 wealthiest citizens was estimated to be $1.57 trillion. This would lead to a ONE TIME inflow to the Treasury of $1.57 trillion. The 2009 budget deficit was $1.4 trillion. This means that after barely covering the deficit for one year, the income taxes paid by these individuals would be $0 from that point forward. This would reduce the Treasury’s receipts increasing the deficit after year one.
Compare this to spending. If you did not spend anything, then current tax revenues coming into the Treasury was approximately $2.5 trillion which would be used to pay down the debt already incurred.
Obviously, by measuring the problem at the two extremes to determine where the problem is, we have a spending problem, because income is what it will be. There is very little control the government has over how much it will receive in taxes in any one year. There are many varilables that go into the equation. Spending is something that can be controlled.
Easy solution, we should limit spending in any year to the prior year’s tax receipts.