The hidden tax increase and job killer in the tax cut deal

The hidden tax increase and job killer in the tax cut deal

"...A glut of government debt should lead to much higher interest rates.

Higher government borrowing also tends to divert savings and investment capital
that would otherwise flow into the jobs-creating private sector.

However, with the Fed engaging in quantitative easing,
...the money needed to buy the additional debt is simply printed.

As such,the nasty side effects have been avoided in the short term.

Instead we are set up for more inflation...

...working Americans will see the real values of their paychecks fall,
as consumer price increases outpace the gains in after tax incomes.

As a result, this plan will do nothing to help our economy.

The benefits of holding taxes low
will be more than mitigated by damage done by larger deficits.

In fact, despite the Fed's efforts to artificially suppress interest rates,
the fear of larger deficits is already driving rates up.

...the only thing this plan will stimulate is larger deficits,
meaning the Fed will be forced to do more, not less QE
in an effort to restrain rates.

...nothing in the plan addresses the fundamental economic imbalances
that underlie our economy and that brought us to the brink of ruin in the first place.

What we really need are massive cuts in government spending so we can have true tax relief. 

...By expanding government and increasing debt,
the plan puts us farther than we have ever been from a real recovery."

Peter Schiff