Analysis of the Deficit, Fiscal Cliff, and US Debt
About That Revenue Problem
Through 11 months, 2012 is set to become the “best” revenue year ever….despite the payroll tax cut, the AMT patch, Doc Fix, the “Bush” tax cuts ect…. Who would have known? Nobody wants to tell the truth, so I’ll take a swing at it. The truth is that our economy has become dependent on government deficit spending to the tune of about 1.1T per year. Nobody thinks this is sustainable, but everybody thinks that if we take it away….great depression 2….and nobody wants to get pinned with that one when the history books are written. Fixing the problem today means instant depression…fixing it later means an even worse depression at some unknown date in the future. Rock…meet hard place.