July 22 2011
IWF in the News: Is Tax Pledge Helping or Hurting Debt Talks?
Too much attention has been paid to the role of tax increases in the current debate over the debt ceiling.The Taxpayer Protection Pledge, which has been in effect for a lot longer than this current conversation, is hardly the problem - and it is being used as a red herring to divert attention away from the real issue at hand: overspending.
As I've written here before, Washington cannot tax its way out of this financial hole and trying to do so would simply slow economic growth at a time when we can least afford it. Our lawmakers' failure to make deep spending cuts is a function of their unwillingness to do the hard work and expend the political capital necessary to restore the nation to fiscal solvency.