December 4, 2008 02:00 PM | Permalink |
The recession faced by the United States has changed the nature of the debate over taxes. Questions of who should pay how much to fund public services have been replaced with questions about how quickly we can boost the economy with tax cuts or government spending that is not paid for. Some of the points raised in this debate have been quite valid, while others have been more problematic. While raising taxes to balance the federal budget is not a high priority during an economic downturn, this should not be used as a justification for enacting unlimited tax cuts without replacing the lost revenue in the future. The following principles can guide the search for a rational and fair tax policy that will mitigate the recession without causing long-term fiscal damage.