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|User Info||The Pain In Spain Is Mainly.....; entered at 2012-04-30 07:30:33|
The simple fact of the matter is that there is no resolution to these problems until and unless budgets are reconciled with current taxes. That's the beginning and end of it; that which we demand government provide in services, whether here or elsewhere, must be paid for with current tax revenues
I just have the urge to add on at that point. I think most people have heard of Grover Norquist who strong-arms Republican Senators and Representatives into siging a pledge to not raise taxes, well, that is the problem. You see taxes are not the problem, as has been said many times before, IT'S THE SPENDING. His pledge should have been, and should be now, no new spending until the budget is in balance with automatic across-the-board spending cuts to make it stay in balance.
What we have now across the whole 'developed' world is a case of unkeepable promises coming due. No amount of taxes will ever be able to fulfill the promises that were made, the people simply can't pay that much tax.
Before, after, or at the same time as when the budget is brought down to the level of tax revenues one more thing is going to have to happen, the wholesale clawback, renegging, or default on unkeepable promises. What can't be paid won't be paid. Honestly, the best course of action would probably be to bring the budget into balance and default on promises at the same time. This would cause an extrememly sharp depression but when we came out of it we would be on the right course.