The Do-Nothing Path, Ctd

Apr 15 2011 @ 9:06am

Peter Suderman throws ice water on this thought experiment:

[The do-nothing plan] allows the Alternative Minimum Tax, originally designed to tax just 155 ultra-wealthy earners, to eventually hit half the country. And since spending is projected to grow at a much faster rate than the economy, so would taxes. Over the long term, then, government would account for a much, much higher percentage of the overall economy than it ever has before, eventually eating up more than 30 percent of projected gross domestic product.

Good point.