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Are Tax Hikes The Lessor Of The Three Evils?

Written by | July 15th, 2011

With the recent budget battle going on in Congress, and the unbelievable amount of debt that our Federal Government has allowed to accrue for our country – thankfully, it seems like the majority of American citizens have come to the conclusion that Congress can no longer be trusted to borrow responsibly against the credit of The United States; and therefore, seem to be on board with getting a Balanced Budget, Constitutional Amendment through Congress, and sent to the states for ratification – where 3/4s of the states will be required to ratify it, for the Amendment it to be written into our Constitution.

I am of the opinion that, unless Congress is willing to endorse this Amendment, and send it to the states for ratification, that, no further increase in our national debt should be allowed. The American people, our country, and future generations, need to be assured that, God-willing, we can get out of this mess, that unprincipled politicians will not be able to bring us to this point again in the future.

Sadly, the sticking point with most Democrats always seems to be a desire to raise the marginal tax rates on income earners. I am one that absolutely believes that our Federal Government does not have a revenue problem, but, rather, an out of control spending problem.

That said, while there is no doubt, that, tax increases, on a micro-economic scale, will hurt families and businesses, and would be bad for an already suffering economy, on a macro-economic scale, if our Federal Government borrows more money, the interest on the current debt will also continue to compound, interest rates on borrowing may go higher, and who will be expected to pay off this debt in the future? The American people and our taxes! Also, if we are able to prevent Congress from raising taxes, and borrowing more money, The Federal Reserve can, and may very well, fire up the printing presses, and further inflate our currency – which steals from our savings, and is tantamount to a national sales tax, as prices on goods and services will continue to rise.

Therefore, imho, if we are to focus solely on the marginal tax hike issue, that is not looking at the BIG picture. While, I am not, and would not, advocate for any tax hike, if we are forced to choose between the lessor of the three evils: more borrowing, more currency printing, or tax hikes, a marginal tax increase, quite honestly, may be the lessor of those three evils; as more inflationary printing, and borrowing, likely, would only serve to further stagnate our economy, and bring us even closer to fiscal insolvency.

Sure, we can stop taxes from being raised, and, we can hopefully stop the borrowing, but, without an act from Congress, how do we get The Federal Reserve to stop flooding the market with more monopoly money?

GOD help us!

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5 thoughts on “Are Tax Hikes The Lessor Of The Three Evils?

  1. markross Post author

    Sadly, without major political will, there is no one size fits all answer. If I could have it my way, we would get a Balanced Budget Amendment immediately to the states for ratification; refuse to raise any tax rates; stop all borrowing, immediately, and prioritize with the revenues already coming into our National Treasury.

    Beyond that, I would:
    1. Work to repeal The 16th Amendment, and abolish The Federal Income Tax;
    2. Institute The Fair Tax, or something ‘very similar’ to it;
    3. Begin Congressional hearings on the virtues of getting us back onto a sound currency system, utilizing gold or silver;
    4. And, consider doing away with The Federal Reserve Bank, once and for all.

    Economically, that would put us much more closer to where our Founders intended us to be. And, I believe, would be far better for our overall economy and well-being.

    Reply
  2. Jackie Durkee

    The problem we have in America right now is downright ashame.  I believe what you said in that it is out of control spending, borrowing, and printing of money that is the problem.  I do believe we need the Amendment now rather than later.  There is not going to be any easy way out of this situation.

    I believe they need to work now to reduce the size of the Federal Government and it should begin with the elimination of the Department of Education and any other Department which is not really in the scope of the Constitutional duties of the federal government.

    Then they need to work out a way (without totally interrupting the marketplace) to eliminate the Federal Reserve.  They need to get back to the point where all money is backed by gold and NOT be able to just print paper money.

    Reply
    1. markross Post author

      Hi Jackie,

      “I believe what you said in that it is out of control spending, borrowing, and printing of money that is the problem.”

      Absolutely! And, from what I understand, we also have the highest Corporate taxes in the world. I would at least cut them in half, if not straight out abolish them; which, I believe, would encourage more companies to do business in The United States.

      We definitely agree, and, as I said in my above comment, that, we must have monetary reform in this country. We also agree that, we do need to cut all non-essentials, and non-explicitly Constitutional items from The Federal Government, and get these things back to the states, and, hopefully, more into the private sector, where they will be handled much more efficiently, and at less of a cost to the tax-payers.

      Reply
  3. markross Post author

    “I wish it were possible to obtain a single amendment to our Constitution. I would be willing to depend on that alone for the reduction of the administration of our government; I mean an additional article taking from the Federal Government the power of borrowing. I now deny their power of making paper money or anything else a legal tender.” – Thomas Jefferson

    Reply
  4. markross Post author

    “By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they also confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency.” – John Maynard Keynes

    Reply

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