Why tax increases don't work"American Enterprise Institute economists Kevin Hassett, Andrew Biggs and Matthew Jensen examined the experiences of 21 Organization for Economic Cooperation and Development (OECD) countries between 1970 and 2007. They found that countries with successful fiscal reforms, on average, closed 85% of their budget gaps with spending cuts. The countries with failed reforms, on average, relied at least 50% on tax increases. President Obama's strategy falls firmly in the latter camp. After discounting the accounting tricks that create fictitious spending cuts, the president's plan would impose about $3 in tax hikes for every $1 in spending cuts."http://www.aei.org/article/economics/why-tax-increases-dont-...The "balanced approach" doesn't work, and what's worse is that a "balanced approach" to Obama means 75% tax increases and 25% spending "cuts" (cuts to increased spending, that is).
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