Next time some statist tries to tell you that our deficits are because the government is just not taxing us enough, remind them that federal tax revenues are at historic highs and are projected to increase.
Despite the new revenue, government is still running enormous deficits. Former OMB Chief David Stockman points out that the federal government is saving money on debt financing by purchasing more short-term debt. However, this strategy only works as long as foreign buyers remain willing to loan the federal government money at ridiculously low interest rates. If (when) foreigners decide to stop buying US debt at low interest rates, then the US economy is a big trouble.
Tags: Taxes, Real Cuts Right Now, debt, Davids Stockman