Most readers of this blog are clients of Brighton Securities, and the overwhelming majority of our clients need little or no advice on reducing debt. You know debt is needed at times, particularly when buying a home. But you also know that in the long run debt imposes its own form of servitude, and too much debt will eventually impoverish the debtor.
But we have a national debt that is large and has grown through Democrat & Republican oversight; through administrations liberal, conservative, and moderate. Both parties spend more than we pay in taxes, no matter how much we pay. How to fix it?
Yet another bipartisan commission has now issued its recommendations. Commission members are a credible bunch and have put forward some very serious suggestions on what we should do - a body of ideas controversial enough that, in the words of co-chair Alan Simpson, Americans can "start to chew on it." The implication, of course, is that we have a lot of chewing to do.
I generally oppose higher taxes and we spend plenty of time and effort to help our clients find ways to reduce their tax burden. But if a tax increase were to truly reduce our national debt, I could get on board. Congress will need to have a concrete plan to reduce spending if they hope to win broad support for more taxation.
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).