Ex-NY Fed Chair Says We Have 'Tax Aversion Syndrome' and Need to Submit to Carbon Taxes, VAT Taxes, More 'Stimulus' and Rationing

Tax Aversion Syndrome and Our Deficit Future
We've run out of painless options. Higher taxes and reduced entitlement benefits for the well-off are the only solutions.
By PETER G. PETERSON
Wall Street Journal
Jul. 27, 2010

We must combine short-term stimulus with a meaningful plan to tackle our long-term structural deficits that would go into effect after our economy has recovered sufficiently.

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Some have tax aversion syndrome—they have never met a tax increase they didn't do everything in their power to block. While I believe that spending cuts must play a lead role in any solution to our long-term structural deficits, the sheer magnitude of the imbalances requires revenue increases.

Ideally, the country should raise as much government revenue as possible from a progressive consumption tax. Such a tax can be designed so that it won't overly burden lower-income families but will raise significant revenues and increase our savings rate.

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Finally, we should implement a carbon tax that would reduce our dependence on foreign oil and lending, while improving the environment.

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