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We need to decrease spending and increase revenue so that our spending is less than our revenue, would you agree? If that's the case then you need to realize that raising taxes does not equate to greater revenue, greater revenue only comes from a higher GDP - since revenue is a relatively static 18% of GDP.Had your original statement been that we need to "cut spending and increase revenue", I would've probably just agreed but the common misconception that 'increasing taxes causes an increase in revenue' is the fallacy I took issue with and sought to correct.Now as to how to grow GDP, that's quite a discussion.
We need to decrease spending and increase revenue so that our spending is less than our revenue, would you agree? If that's the case then you need to realize that raising taxes does not equate to greater revenue, greater revenue only comes from a higher GDP - since revenue is a relatively static 18% of GDP.
Had your original statement been that we need to "cut spending and increase revenue", I would've probably just agreed but the common misconception that 'increasing taxes causes an increase in revenue' is the fallacy I took issue with and sought to correct.
Now as to how to grow GDP, that's quite a discussion.
