Quote:
Originally posted by sgtclub
This is only true if you view things as static which, of course, they are not.
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Actually, it's true because things aren't static. As tax revenues decrease because one form of income (dividends) are taxed at lower rates, one of two things must happen: either expenditures have to decrease correspondent with the reduced revenues or taxes on other income (wages) must increase to make up the gap.
We've seen that the current administration is incapable of reducing spending. To be fair, no administration in recent history has managed to reduce expenditures in any meaninful way. Therefore, the tax revenue derived from wages will have to increase.
