How would Sensible Tax Reform affect the federal budget deficit?
There have been numerous tax cuts in recent years. All of them have been designed to increase the federal budget deficit and increase the federal debt. As a result of the presidents and Congress refusal to live within our governments means, massive budget deficits are projected annually for years to come. The federal debt has increased by more than $5 trillion since 2000, after declining in the latter years of the 20th Century. That was even before the current economic crisis. The economic recovery programs of the federal government will increase that debt greatly. Sensible Tax Reform is designed to be revenue neutral in the first year of its implementation. That means that, based upon the projection of government expenditures, the federal deficit will be approximately the same in the first year of the program as under current taxes. However, STR will produce a much more dynamic economy in coming years. That will lead to higher tax revenues and the opportunity for rapidly declining def
