No. of Recommendations: 4
However a modest tax rise would fix it all. There is no need to pay off all the debt, as all you need is to get the rate of increase of government debt lower than the trend rate of GDP growth and the problem fades away.That "all you need" is doing a lot of heavy lifting.
Problem is, what has happened EVERY TIME that Federal taxes were increased, Congress increased spending as much or (usually) more than the additional tax.
I have also seen this happen in every one of the 3 states we have lived in. Colorado, Illinois, and my present state.
I don't feel like googling it, but I bet that the same thing has happened with VAT tax rates.
Oh, heck, let's try one:
UK VAT
From Standard rate
1-Apr-73 10.00%
Jul-74 8.00%
18-Jun-79 15.00%
19-Mar-91 17.50%
1-Dec-08 15.00%
1-Jan-10 17.50%
4-Jan-11 20.00%
