By Tom Quiner

The chart above quickly tells the story.

If Congress fails to raise the debt limit, will we have enough money to make interest payments on the national debt?

Yes.

If Congress fails to raise the debt limit, will we have enough money to cover social security?

Yes.

Medicare?

Yes.

Essential defense?

Yes.

After these areas are paid for in August, that will leave the Treasury another $388 Billion to “play with” the rest of the month. Perhaps they can begin furloughing federal employees until spending is brought in line with the new debt ceiling reality.

Many from the Left side of the aisle seem insistent that we implement a “balanced” approach in solving our debt problem. In other words, raise taxes.

That would be the worse thing we could possibly do if history is any guide. Two researchers from the University of Ohio, Richard Vedder and Lowell Gallaway, wrote a famous paper in the 1980s that revealed that every new dollar in taxation led to $1.58 in new spending.

More taxes emboldened Congress to spend more.

These researchers updated their data comparing different eras and the effect tax increases had on spending.

Increases in taxes ALWAYS led to increases in spending, the increase ranging from $1.05 to $1.88 in new spending for every new tax dollar.

Republicans must hold the line and insist on spending restraint. Tax increases, whether they’re on the rich or the poor, will only make things worse based on history.

Spending is the problem.

The federal must reign in its spending appetites before it’s too late.

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