Sure it would be great to get rid of the IRS, but what would replace tax collections? Sales or VAT most likely if no income tax. So how do you figure if sales tax is paid on what everyone buys? There will be lots of black market goods, smuggled in and sold without taxes.
THE 2024 TRUMP CAMPAIGN POLICY PROPOSALS: BUDGETARY, ECONOMIC AND DISTRIBUTIONAL EFFECTS
- We project that conventionally estimated tax revenue falls by $5.8 trillion over the next 10 years, producing an equivalent amount of primary deficits. Accounting for economic feedback effects, primary deficits increase by $4.1 trillion over the same period.
THE 2024 HARRIS CAMPAIGN POLICY PROPOSALS: BUDGETARY, ECONOMIC AND DISTRIBUTIONAL EFFECTS
- We project that spending increases by $2.3 trillion over 10 years while conventional tax revenue increases by $1.1 trillion, for a difference in primary deficits of $1.2 trillion. Accounting for negative economic feedback effects, primary deficits increase to $2 trillion.
This is a good analysis but there are too many unknowns for their analysis to matter. Both parties are driven by behaviors, not economics or raw data. So what is the behavior? TO PUSH THROUGH EVERY PROGRAM or TAX CREDIT (mostly DEMS) or PUSH THROUGH EVERY TAX CUT AND EXPAND MILITARY (GOP) that they can possible pass through Congress. The unknown is they will use every crisis and excuse to borrow according to their desires. Neither party has been shown to have any discipline. Debt limits are pushed aside, no real spending cuts in a generation, additions of all types programs or ways to defer taxes. (I maintain a tax cut with borrowed money is not a tax cut but rather a tax deferment scheme to make the younger pay) So what limits the debt? INFLATION and a weak dollar. The dollar is only stable because other world currencies are in debt too. Compared with gold though the dollar has been tanking. Inflation finally showed up so the Federal Reserve will get schooled again if they lower rates and expand their own borrowings (quantitative easing) as they have done in the past. Money printing does indeed cause inflation and huge deficits require such money printing.
The worse news is that here we are on the edge of WWIII and the public debt is higher than it was at the end of WWII. Imagine having to triple military spending for even a couple of years.
In ten years I believe the US public debt will approach 80 trillion, maybe more. It is 35 trillion now, with deficits running 3.1 trillion. if we maintain the pace for ten years it is easily 65 trillion but the dollar will be worth far less so the 3.5 trillion will soon become 5 trillion. Will the rich pay? Some yes, but most will be paid through inflation.
Still, not as great as the tribulation.
Rev. 6:6 Then I heard what sounded like a voice among the four living creatures, saying, “Two pounds of wheat for a day’s wages, and six pounds of barley for a day’s wages, and do not damage the oil and the wine!” It dawns on me why would wheat cost so much?
