….[Greenspan] says he supported the 2001 cuts because of pending budget surpluses, but now that huge deficits loom, new revenues are needed.
Why? Brian Riedl of the Heritage Foundation says that since the cuts, “The rich are now shouldering even more of the income tax burden.” The deficit has grown not because we are undertaxed but because government overspends. “Tax revenues are above the historical average, even after the tax cuts,” Riedl writes.
Given the stagnant economy, this is the worst possible time for tax increases. (Is there ever a good time?) Taking money out of the economy will stifle investment and recovery, and it’s unlikely to raise substantial revenue, even if that were a good thing….