Monday, September 15, 2003

More on Taxes

Being on vacation, I missed this great piece by Paul Krugman in the NYT Sunday:

A result of the tax-cut crusade is that there is now a fundamental mismatch between the benefits Americans expect to receive from the government and the revenues government collect. This mismatch is already having profound effects at the state and local levels: teachers and policemen are being laid off and children are being denied health insurance. The federal government can mask its problems for a while, by running huge budget deficits, but it, too, will eventually have to decide whether to cut services or raise taxes. And we are not talking about minor policy adjustments. If taxes stay as low as they are now, government as we know it cannot be maintained. In particular, Social Security will have to become far less generous; Medicare will no longer be able to guarantee comprehensive medical care to older Americans; Medicaid will no longer provide basic medical care to the poor.

It's long, but it's very much worth your time to read.

While on the subject of Krugman, Kevin Drum over at Calpundit will shortly be posting an interview he did with Krugman. Something to watch for, for certain.

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