2 thoughts on “Primer On Federal Taxes”

  1. “I am in favor of cutting taxes under any circumstances and for any excuse, for any reason, whenever it’s possible. The reason I am is because I believe the big problem is not taxes, the big problem is spending. The question is, “How do you hold down government spending?” Government spending now amounts to close to 40% of national income not counting indirect spending through regulation and the like. If you include that, you get up to roughly half. The real danger we face is that number will creep up and up and up. The only effective way I think to hold it down, is to hold down the amount of income the government has. The way to do that is to cut taxes. “

    Milton Friedman

    1. Friedman is right, of course. Politicians try to evade the impact of restraining spending by holding taxes down. They do this at the federal level by spending deficit dollars, thus leading to inflation and the dollar being worth less. At the state and especially the local level here in Guilford County and Greensboro, they put bonds on the ballot they know the voters will pass, leading to inevitable tax increases later.

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