Halloween happens to fall on a Sunday this year, which means my guest this weekend will have to weave the topic in with the spooky holiday. Chris Edwards, my go-to expert at Cato on all things debt and tax-related, should have no trouble frightening my listeners with his latest analysis.
Where to start? The skyrocketing debt has economists murmuring about inflation. But sometimes the proposed solutions are even more terrifying than the problem itself – as in the case of new taxes on capital gains, corporate income, and even a special so-called "billionaire's tax" on unrealized capital gains. Edwards returns to the show to break down the folly of scapegoating the wealthy, and why this approach is likely to backfire.
All the while, tax revenues have actually grown to their highest rates. Yet rather than using the windfall to reduce debt, Democrats are proposing a new spending binge that makes the 2008 stimulus look like chump change. As always, the government promises that its spending spree will stimulate innovation and growth, but Edwards points to the well-established link between debt and reduced growth.
They say that death and taxes are the two inevitabilities. Massive debt, however, is not inevitable.
Tune in for a special Halloween edition of The Bob Zadek Show to hear how we can turn back the debt clock, or at least stop the ticking time bomb that it represents.