Tuesday, December 7, 2010

The Deal

The feds have been collecting 19% of GDP plus minus a little for as long as anybody can remember. Most of that time they've been spending a little more, say 21%. In the last two years, for some reason, that number has risen to more like 26%. It's not that we're not collecting enough in taxes, it's that we're spending way too much.

Something has to give on the spending side. This compromise raises taxes, just not as much as the democrats wanted, and spent more, just not as much more as they wanted. Even getting them to compromise that much is a victory, but it is only the beginning of what needs to be done to get income and outlays to balance.

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