Or, how stupid are people? This deal has solved nothing. The Americans have only just kicked the can down the road. Problem is not taxes, it is entitlements. We want gold-plated social programs, pensions and health care, but we want someone else to pay for it.
Unfortunately, the republicans were right. You can collect more taxes, not by raise tax rates, but by getting rid of tax deductions. An economy would do better with low broad tax rates rather than higher rates with all sorts of tax deductions for this and that and for that other thing. Taxes are far too complex. However, no one wants to hear this.
If you have read anything on this deal you would have seen that the deal is all about higher taxes. There were no cuts to entitlements. We need to get spending under control. This is not only a US problem; it is a problem for the whole Western world.
Here in Canada, we have the same problem. What we need to do is get budgets balanced and then start to pay down debt. We need to get into better shape before the next recession comes.
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