K-12 Tax & Spending Climate: Taxes And America’s Debt Binge

Tyler Cowen:

One point the authors emphasize is that, unlike after earlier episodes of American debt binges, America today has not reestablished a comparable primary surplus. The authors suggest taxes on labor or consumption can restore fiscal solvency, but higher taxes on capital won’t work, given dynamic and Laffer curve considerations. They do not devote comparable attention to changes in the trajectory of government spending.