In December the President's Commission on the Deficit will report and speculation is that the commission will recommend changes in Social Security benefits as well as a host of new and increased taxes. After two years of irresponsible, reckless spending the Democrats will suddenly become deficit hawks and paint Republicans as standing in the way of long needed "Tax Reform".
This is the Great Tax Trap and Republicans need to prepare for it by talking about and targeting spending, not deficits.
Yes, the deficit is a big problem. But, increasing taxes will make the problem worse, not better. To restore economic growth and vitality we need to cut taxes balanced, to the degree possible, by spending cuts.
Tax cuts result in lower debt and higher savings. Savings makes capital available for investment, investment produces innovation, innovation results in business formation, business formation creates jobs, jobs result in production. The United States cannot thrive by selling debt to the world. What's needed are game changing American products.
This is the reverse of bailouts and stimulus which seeks to increase GDP by increasing aggregate demand. Demand for what? Food, clothing, rent and utilities? That's consumption, not wealth creation. GDP cannot increase without products worth buying and the cash to buy them. People can "demand" an iPhone X all they want but will be unable to buy one until it is produced.
The Great Tax Trap has to be avoided. The debate cannot be allowd to be framed in terms of the deficit and must, instead, be focused on slashing spending and cutting taxes to restore growth.