- Feb 27, 2009
When growth gets going and books balance - one can then cut taxes assuming G is earning its way and raise rates to ease off inflationary pressure on excess borrowing. Ensuring one is earning ones way and not borrowing...
Consider that you have a high level of debt.
Taxation represents government income. So are you saying that if you worked in a job, and your salary was going up, and your income was more than your living costs, so that you didn't need to borrow more money (original debt still exists of course) that you would at that point decide to cut back on your working hours and earn less income?
That would completely ignore two important things. The first is that, you have a huge amount of outstanding debt, and second that you may go through harder times in the future, and it might be wise to at least earn the same amount or gain even more income while you can, and pay off debt or save for that rainy day.
What you're suggesting, if I have understood it correctly, is completely wrong. And obviously so. When things get going, and the books are balanced, it is at this time that you pay off as much of your debt as you can.