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Author: jerryab Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1949418  
Subject: Re: Sequestration again Date: 12/12/2012 11:25 PM
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Here is an example of ignoring reality.

Ok, we will watch you publicly demonstrate you ignore reality.

We have averaged only 18.3% of GDP in federal tax revenue over the last 75 years.

So? If that was sufficient revenue, then the US National Debt would be paid off....

And, we have hit 20% twice in that period.

Most recently under Clinton--with budget surpluses and the beginning of planning to pay off the US National Debt. So, 20% seems to be a viable number.

And Peter claims 20% is normal.

If one intends to pay off the debt and be in good financial condition for the long term--then 20% is the ratio to use. Unless, of course, you intend to run deficits forever.... It is not a quick fix--but it is a viable solution that could be implemented with the idea taxes go down as the debt keeps falling and hits certain targets. Concept is somewhat analogous to a long-term mortgage. It hurts the most at the beginning. Then it gets easier as the economy adjusts and the debt goes down.
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