Warning: Brief predictions and political commentary.
There are four reasons why we will see tax revenues decrease this year in the future. #1. Geithner.
#2. Stupid withholding changes.
#3. A terrible economy.
#4. A mistaken belief that Laffer was wrong.
Every decision made so far is guaranteeing that a shadow economy emerges bigger and bolder. Add in certain inflation as the Fed prints more money to cover exorbitant government expenditures, we can expect the rise of cash, barter, and even the use of privately printed gold and silver certificates. So what is a needy government to do? As Reuters reports today:
"President Barack Obama proposed on Thursday nearly doubling funds to enforce U.S. tax laws next year, with an aim of more than quadrupling funding for tax compliance to $2.1 billion within five years."
Wow.
