Monday, September 08, 2003

Questions for a Real Economist. Brad -- really enjoy reading your blog; you make the numbers accessible!  I have a couple of questions, if you have the time... First, is there a straightforward percentage of growth in the economy that will cover the deficits being projected right now, including the war expenses?  I gather that the idea behind these deficits is that they help grow the economy.  A bigger economy means more tax receipts, and hence the deficit goes away.  This makes a certain amount of sense; I'm just curious about what the growth number is that will be needed to "cover" the bet. Second, if we were to replace income tax with a national VAT, what would that VAT be, in percentage terms?  I suspect it would be pretty high.  Is this just income tax receipt/GDP, more or less?  11:30:53 PM     | comment [] | trackback []