Monday, April 19, 2010

Ready for a 30 Percent Tax Hike?

Robert Samuelson asks "How big a government do we want?"Because even under Republicans presidents, government grows. Granted it grows a lot faster when Democrats like Harry Reid, Nancy Pelosi and Barack Obama are in charge.
Left alone, government would grow larger. From 1970 to 2009, federal spending averaged 20.7 percent of the economy (gross domestic product). By 2020, it could reach 25.2 percent of GDP and would still be expanding, reckons the Congressional Budget Office's estimate of President Obama's budgets. In 2020, the deficit (assuming a healthy economy with 5 percent unemployment) would be 5.6 percent of GDP. To cover that, taxes would have to rise almost 30 percent.

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