Robert J. Samuelson reports on the gap between Americans wants and needs from the government versus our willingness to be taxed. This is especially relevant now because the number of older Americans, who are the largest beneficiaries of federal spending, is rising rapidly. Unless we’re prepared to make sizable spending cuts (and there’s no evidence we are), we need higher taxes.
Samuelson argues that President Trump’s proposed tax reform is a dangerous distraction and that we cannot afford large tax cuts, which are pleasing to propose, but involve long-term risks that are not understood by the president or, to be fair, by economists.
Due to the fundamental gap between what most Americans expect from government – from highways to defense to support for the elderly – and the corresponding tax burdens, the disconnect cannot simply be erased by massive tax cuts. Sooner or later, we will face higher taxes, whatever happens to Trump’s present proposals.
See full post at: Taxes will go up. Here’s why. – The Washington Post
Posted by Jacqueline Groccia, Associate Editor, Wealth Strategies Journal.