Bernanke Wants a Simplified Tax Code and For the US to Get Its Debt Problem Under Control
In non-news, Ben Bernanke insists that the US must cut its deficit or face the consequences. This is sort of like the crack dealer staging an intervention for his most cracked-out customer and while it used to be fun to watch, it's getting old (and scary).
Federal Reserve Chairman Ben Bernanke said Tuesday the U.S. needs to soon come up with a plan to cut the budget deficit, urging President Barack Obama's debt commission to look at how the tax system can be changed.
Speaking to the bipartisan commission, Mr. Bernanke stressed that an economy is stronger when taxes aren't too high and are collected in an efficient, equitable and transparent way.
"At present, a broad consensus exists that the U.S. tax code does not satisfy these criteria and is in need of reform," Mr. Bernanke said in prepared remarks to the first meeting of the commission, which was hosted by Mr. Obama.
"I suspect that it is too much to ask the commission to review the tax code in detail, but a full picture of our budgetary dilemma will require attention to the strengths and weaknesses of our current system of raising revenue," the Fed chief said.
The full text of Bernanke's remarks may be found via the Board of Governors here.
Here's my favorite quip from our dear Fed Chairman:
No laws are more basic than the laws of arithmetic: For fiscal sustainability, whatever level of spending is chosen, revenues must be sufficient to sustain that spending in the long run.
That's funny, isn't a large chunk of our federal income tax spending based on servicing outstanding debt, much of which was issued by the Fed itself? Or did you think we got all those Federal Reserve Notes in your wallet for free as a favor from Uncle Fed? You wish.