When the federal government spends more each year than it collects in tax revenues, it has three choices: It can raise taxes, print money, or borrow money. While these actions may benefit politicians, all three options are bad for average Americans. Deficits mean future tax increases, pure and simple. Deficit spending should be viewed as a tax on future generations, and politicians who create deficits should be exposed as tax hikers.
About this quote
- What does it mean?
- Paul says deficits force future tax hikes or money printing, which harm average Americans, and calls deficit spending a tax on future generations.
- In plain terms
- Deficits are a hidden tax on future citizens and hurt average people.
- What can you take from it?
- Treat deficit spending as a burden on future taxpayers.
Where it applies
Putting it to work
Questions to consider
- When is deficit spending justified?
- How can we mitigate future tax burdens?
Another view
Deficits can stimulate growth during recessions; the impact varies.
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