A great demonstration on how “soaking the rich” will not solve the federal government’s budget problems

I remember billionaire Ross Perot giving a similar talk on this about 15 years ago, except back then you couldn’t balance the budget by taking everything the rich had. He said that would only fund the government for 3 months. Now the rich are a lot wealthier, and it’s conceivable that you could balance most of the budget by taking everything the rich have. The problem is the government would get significantly less revenue the following year if it actually did that. The goal isn’t practical, and we would be rightly considered a nutcase of a country if we did it, but I’ve met people who basically believe in this.

The article the presenter refers to is here.

The inconvenient truth is that the government is going to have to cut spending, and in the most uncomfortable places. Another problem is that in order to avoid a crisis, some brave politicians are going to have to sacrifice their careers, just as the Democrats did to pass their health care bill (though they got cushy private sector jobs as rewards for their votes. I doubt any politicians are going to get the same rewards for cutting federal spending…). Barring that, events are going to force us as a country to make some tough choices, and that’s going to be a lot more painful. I hope we choose to avoid that fate.