When taxes are cut and spending isn’t, future taxes go up. It’s the only way to pay off the resulting debt. That’s why the stimulus plan’s tax cut isn’t really a tax cut.
CBO just came out with a number for this future tax increase: $347 billion. (Hat tip to Katherine Mangu-Ward)
Wait, hold on a minute. I missed something. Actually, that’s just the interest payments on the debt from the stimulus package.
Just the interest payments. $347 billion.
Wow.
That’s going to be a pretty big drag on the economy. Maybe this stimulus isn’t such a good idea.
Inertia Wins! 