Facing Up to the Deficit
David S. Broder’s column (Editorial Pages, Feb. 10), “It’s Not Nice, but Someone Has to Say It: Raise Taxes,” hits the nail squarely on the head, but it doesn’t drive it all the way home. He reminds us of the fact that compound interest increases exponentially, and proposes tax increases to cure the deficit problem. He doesn’t seem willing to recognize that tax increases alone cannot cure the disease.
The economy is relatively healthy at the present time. It is in good times that we must achieve surpluses, not just smaller deficits. To get out of the compound interest problem we must do more than lower the deficit. We must have a surplus or be able to ensure that there is a surplus within a very few years. I doubt that taxes can be increased enough to create a surplus.
The only other items in the President’s budget that have enough dollars in them to have a chance of getting to a surplus are defense, Social Security and the interest on the debt. Almost $200 billion must be taken out of these items or be gained by increased taxes, or the compound interest problem will continue.
The only way we can take anything out of the interest payments is for the government to go bankrupt. Hardly a likely solution. More than $30 billion or $40 billion in either increased taxes or reduced Social Security would come close to creating a rebellion. Hardly a good prospect for $200 billion there. The defense budget is the only item with real potential for major cuts. It just takes someone with the courage and the insight to do it.
The Soviets have been outsmarting us ever since they first realized that they were no longer our allies after Hitler was defeated. They are using us as a bugaboo to keep their people in line. Their leaders hope that they can overcome us economically by seducing us into ever larger military budgets. It would appear that they are coming close to succeeding.
What we need is a President of the courage of Richard Nixon who took the Chinese dragon by the tail and almost single-handedly turned that country around so that it is now on the path toward becoming a responsible member of the community of nations and moving in the direction of capitalism and freedom. It’s too bad that Nixon let himself destroy his presidency.
I don’t know why I worry about these things. I served in World War II and should let the people who won’t read history relive it as they will and hope that the catastrophe won’t occur in my time.
RICHARD FOY
Redondo Beach