Is the budget deficit a spending problem or a tax problem?

Question

http://www.heritage.org/research/features/BudgetChartBook/fed-rev-spend-2008-boc-C1-Federal-Spending-Is-Growing.html?CFID=24898425&CFTOKEN=72333719

Answer 1

Some think cutting taxes is bad.  The thing about cutting taxes is that it leaves more profit.  When you have more profit you can expand business.  When you expand business you get more business income and so more business income tax dollars.  When you expand business you get more employees who also pay tax dollars.  Cutting the tax percentage then causes more tax dollars to flow.  Deficit spending should only happen in time of war or grave national disaster.  In the last 8 years we've had copious amounts of everything that causes deficit spending.  Two war fronts, like em or not they are there. Four hurricanes in one year alone in Florida,  Katrina,  Floods in the Midwest  Massive forest fires in the west.  These are things no one has control over and are difficult to budget for.  Raising taxes isn't going to cause more tax dollars to flow.

Answer 2

Spending.  Tax cuts lead to increased revenue.  Non-military spending has increased at a large rate.

Answer 3

Yes. The Democratic Congress mania for tax cuts, tax cuts and more tax cuts, without spending cuts to match, only means that they feel it OK to put the War and more on the nation's Visa cards. The democratic congress needs to stop approving all of the spending bills.

Answer 4

Yes. The Republican mania for tax cuts, tax cuts and more tax cuts, without spending cuts to match, only means that they feel it OK to put the War and more on the nation's Visa cards.

Of course, then theres *interest charges*...

The first purpose of taxation is to raise the money to pay the public sector's bills. If you cut taxes while boosting spending, you are failing/refusing to do the job.

Answer 5

definitely spending (like drunken sailors!)!!!

you ask the BEST questions, man!!!

Answer 6

Spending. Or the lack of control of spending record tax revenues.

Answer 7

spending of course, the govt gets enough taxes to cover everything that REALLY needs to be paid for and will still have plenty left. the problem is they  spend hundreds of millions of dollars on things that quite frankly are really not that important. How much money do we send to foreign countries along with our jobs,. Countries that don't need the money nearly as much as the US. How much is spent on war in Iraq that should have been over a long time ago. More money is wasted on NEEDLESS junk. All the money we are spending on the war in Iraq in itself could house every homeless person in America. We are in big debt time.. Bush is like a gambler. you spend and spend and spend.. then you go broke and borrow from others and spend their money then it's gone and you are back to square 1.. a bigger deficit  and therefore a need to raise taxes. The problem is when taxes go up 5%, President BUsh waste 20% so I wonder why we are in a deficit.