There is a good reason why Republicans and Reagan Democrats oppose tax increases and favor spending restraints: A dollar of tax increase to pay for an additional dollar of government spending costs the economy much more than a dollar — and that price is payable in the form of fewer private-sector jobs and lesser living standards for low- and middle-income families.
Unless President Obama relents or is defeated at the polls, the government will in January begin bettering its own finances by doing large amounts of damage to everyone else’s. The economy will over the period 2013-22 be hit by gigantic tax increases that do at least $2 of extra damage to jobs and incomes for every $1 of added tax revenue.
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