So much time and energy is being spent advancing the myth that raising taxes is the best way to avoid falling off the so-called “fiscal cliff.”
If you raised taxes on the top income bracket, you would generate around $1 trillion over 10 years. The past four years under President Obama have resulted in trillion-dollar deficits each year. At this rate, in 10 years we’re looking at $10 trillion in new debt. At best, the “tax-the-rich” proposal is just a 10 percent solution.
Let’s take this tax-more, spend-more approach to the extreme. If you return everyone to the Clinton-era tax rates, you’re still left with a 10-year, $2.3 trillion deficit, and that’s assuming everything stays as it is right now, and Washington breaks its trend of spending more every year. (Even if we go over the fiscal cliff and return to Clinton-era tax rates, we’re still left with at least a $2.3 trillion deficit over the next 10 years.) The bottom line is this: Under no proposed scenario does raising taxes eliminate the deficit and return us to a balanced budget. The problem is government spending.