Low marginal tax rates are supportive of economic growth. I would submit that we would want to look very hard at government spending - make sure it's controlled - before we raise taxes, which, in turn, would have negative impacts on the economy.
I am going to begin now a practice of not making recommendations on specific tax and spending proposals.
This necessary spending should not, however, jeopardize the president' long-term deficit-reduction goals.
There is a deficit; I'd like to see it lowered. But it's up to Congress to decide whether that should be done by higher taxes, lower spending or some combination.
Under a paper-money system, a determined government can always generate higher spending and hence positive inflation,
impact on consumer spending and production broadly will be modest.