wrote in message
oups.com...

Increased spending alone, and tax cuts alone, do not create deficits.

I agree.



Deficits result from the failure to balance income and outgo.


Thanks for stating the obvious.

If the
government wants to spend more money, it needs to collect *enough* more
money to cover the increased expenditure, (not just "some" more money).

Of course. But Republicans believe that cutting the tax rate will increase
tax receipts as the economy expands.


If the government wants to decrease taxation, it needs to decrease
spending by as much or more than the tax cut.

A tax "cut" does not equal a decrease in tax revenue. In fact, just the
opposite occurs.



I have stated many times that I don't have a problem with tax
cuts...provided they are coupled with spending cuts. What we have now
are tax cuts and spending increases.

Cap spending increases and cut the tax rate and you'll have a surplus as the
economy grows.

But the problem is that when the news talks about a "cut" in spending,
they're really just talking about a reduction in the size of next year's
increase in spending.




Regardless of the excuses for increased spending, (invasion of Iraq,
sort of responding to hurricanes, etc)fiscal reality says that any
entity must generate enough income to cover the increased spending.


Yes, eventually. But not necessarily every single year.

Take the NOYB household. Let's say you earn $400k a year from your
practice and take home $250k. (just a guess based on some dentists that
I know, don't be insulted.....).

Those are realistic numbers for dentists in their peak earning years (age
40-50). Once my practice is paid off in 4 years, I'll be 38, and my income
should pretty much match your example. So no offense taken. ;-)

Mrs. NOYB runs the household on $240k
a year, so you've got enough left over for a week in the Bahamas once
in a while. The next year, Mrs. NOYB comes to you with a household
budget that calls for the expenditure of $350k, not $240k. You tell her
that will be fine because you expect your billings to go up 15% during
the year. Now you're earning $460k and taking home $300k so you can
claim that you have additional income, but the household spending (not
the lack of income) is going to put you in deep doo-doo before too many
years go by.

If my household were like the government, I could expect that revenues and
spending will increase and decrease over time as the economy goes through
cycles.

I could draw on my home equity line in the lean years, and then pay it down
in the stronger years. Of course, I have a limited lifespan in which to
spread these fluctuations out over. But eventually it's time to pay the
piper.

The federal government doesn't have a finite lifespan...and can therefore
borrow ad infinitum.