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TMFMmbop (36.06)

Higher Taxes Are Inevitable



April 07, 2010 – Comments (1)

I enjoyed (as much as you can given its dire predictions) reading the Tom Cooley column that's on the front page of at present. His premise is basically that significant tax increases are coming, including for those making less than $250,000 annually as well as a VAT, given the government's current spending plans.

Yet I'm not sure the picture he paints is dire enough:

The other good news is that the U.S. dollar is and will continue to be the world's reserve currency.

Yes this is true today, with the USD account for about 60% of reserves, but this number is on the long-term decline, and I expect that will continue to be the case. Over the next decade the world will get more comfortable with emerging market currencies and interest rates here will have to rise in response even if economic growth here is not where we want it to be. That's a foreboding fact and one I'm addressing in my Global View column tomorrow.

1 Comments – Post Your Own

#1) On April 07, 2010 at 12:53 PM, PeteysTired (< 20) wrote:

Why do we need to pay more in taxes? 

It seems to me that all we need to do is get the Federal Reserve to buy US treasuries or encourage the Federal Reserve to get banks and other foreign banks to buy treasuries.

In fact, why do we have to pay taxes at all?

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