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.
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.
This necessary spending should not, however, jeopardize the president' long-term deficit-reduction goals.
I am going to begin now a practice of not making recommendations on specific tax and spending proposals.
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.