Home
/
RELIGION & LIBERTY ONLINE
/
Acton Commentary: Do Less with Less
Acton Commentary: Do Less with Less
Jan 14, 2026 1:48 AM

In this week’s Acton Commentary, “Do Less with Less: What the History of Federal Debt and Tax Leverage Teaches,” I reflect on how the federal government has lived beyond its means for decades. This reality is especially important to recognize as we approach Tax Day this year as well as in the context of debates about how to address the public debt crisis.

There are many who think we need to raise taxes in order to close the historic levels of deficit spending. In theory I would consider raising taxes as a viable option, or at least preferable to continued deficit spending, since it would at least make the real cost of government more visible. Roughly 40% of what the government spent last year was beyond what it took in.

But without structural connections between increased taxes and balancing the budget, there’s nothing at all to give us hope that the government wouldn’t simply continue to leverage the greater revenue into greater deficit spending. In this vein I note the conclusions recently updated by Richard Vedder and Stephen Moore, that “over the entire post World War II era through 2009 each dollar of new tax revenue was associated with $1.17 of new spending. Politicians spend the money as fast as es in—and a little bit more.”

Calvin College philosophy professor James K. A. Smith doesn’t take this reality into account, I don’t think, when he recently argued that the current situation calls for raising taxes, both on the rich and the middle-class. Thus, he writes,

But only a lazy, unimaginative take on this would assume that “low taxes” is a given. So sure, one strategy to reduce debt would be to slash spending, which inevitably happens on the backs of the poor and vulnerable, particularly women and children.

The alternative to such an unattractive option as Smith sees it is to raise taxes, particularly on the rich. Smith thus points to the idea that America needs to adopt a “graduated tax like most other North American countries.”

The fact is, though, that the US already has a progressive tax system, and indeed places a much higher relative burden on the top decile of household es than other developed nations.

One of the next big fights will be over raising the debt ceiling, as Smith points out. Perhaps we can link balanced budgets with increases on the debt ceiling (something more feasible than passing a balanced budget amendment). The idea would be that we only increase the debt ceiling on the condition balancing the annual budget, and that we only think about raising taxes to balance that budget if we mit to balancing it.

Simply raising taxes won’t do anything but give the federal government more money to leverage into higher levels of deficit spending.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Bonhoeffer on Church and State, Part 3
The following is the text of a paper presented on November 15, 2006 at the Evangelical Theological Society 58th Annual Meeting in Washington, DC, which was themed, “Christians in the Public Square.” Part 3 of 3 follows below (series index). War and Peace I will conclude with a brief word about Bonhoeffer and pacifism, given the ongoing claims about Bonhoeffer’s mitment to the practice of nonviolence.[i] First, it should be noted, with Clifford J. Green, that it is invalid to...
Generous Conservatives
Desperate Philanthropist? In a recent column in the National Post, David Frum looks at an “astonishing” new book on charitable giving due out this month from Syracuse University professor Arthur C. Brooks. In “Who Really Cares: The Surprising Truth of Compassionate Conservatism,” Brooks contends that conservatives are really “more generous, more honest and more public-spirited” than liberals. Frum starts his column with a quote from Desperate Housewives actress Eva Longoria, who asserts: “Everyone on Wisteria Lane has the money of...
Bonhoeffer on Church and State, Part 2
The following is the text of a paper presented on November 15, 2006 at the Evangelical Theological Society 58th Annual Meeting in Washington, DC, which was themed, “Christians in the Public Square.” Part 2 of 3 follows below (series index). Relationship between Church and State It must first be noted that Bonhoeffer’s conception of mandates was a statement about the ontological ordering of God’s rule in the world, not a particular statement about the precise form that rule would or...
Wait – You Mean Taxpayers DON’T Have to Pay for Stadiums?
Refreshing news from Major League Baseball: In the interest of full disclosure, I have to say, I have loved the Oakland Athletics for a long time now. I love how they are the anti-Yankees, consistently fielding winning teams despite having one of the lower payrolls in the game, and losing superstar after superstar to richer teams. I love their plucky spirit and their annual belief-defying August winning streaks. I love Billy Beane’s flair for the dramatic. I love that they...
The State Which Would Provide Everything
is the title of an insightful article by Fr. James Schall over at the Ignatius site. An analysis of the political contribution of Deus Caritas Est, Benedict XVI’s first encyclical, ments: The Second half of the encyclical is a brilliant treatise on the nature and limits of the State and what lies beyond it. "We do not need a state which regulates and controls everything," Benedict writes, "but a State which, in accordance with the principle of subsidiarity, generously acknowledges...
Immigration Policy and the Future of Free Market
I have been quite concerned for some time about the shrill debate over illegal immigration and its potential fallout for free trade. I have argued, at Acton events and elsewhere, that no long-term solution to the flow of illegal immigration from Mexico is possible, without significant economic growth in Mexico. U.S. per capita GDP is 6.5 times greater than the Mexican per capita GDP. The public service infrastructure in the US is far superior to that in Mexico. Taken together,...
A Thanksgiving Prayer
Almighty God, Father of all mercies, we thine unworthy servants do give thee most humble and hearty thanks for all thy goodness and loving-kindness to us and to all men. We bless thee for our creation, preservation, and all the blessings of this life; but above all for thine inestimable love in the redemption of the world by our Lord Jesus Christ; for the means of grace, and for the hope of glory. And, we beseech thee, give us that...
Natural Law and Christian Social Thought
Two new and intriguing books from Cambridge University Press have crossed my editorial desk recently. Anticipate reviews to appear in the Journal of Markets & Morality sometime next year; but in the meantime I wanted to give them each a plug. Both draw on the philosophical tradition of the natural law to address contemporary debates in social/political thought. The argument of Christopher Wolfe’s Natural Law Liberalism is summed up in a blurb by Notre Dame law professor Gerard Bradley: “No...
The Parenting Class
Along the same lines as my earlier post, The Weekly Standard argues that putting the needs of parents first, can form a more stable foundation for an alliance between fiscal and social conservatives. Both fiscal and social conservatives should put themselves in the shoes of the parenting class and focus on petition and choice while also encouraging the growth and strength of the two-parent family. In health care, for instance, conservatives have consistently failed to approach things from that point...
Good News for the Moralists
Here’s some good news for those who prefer bat cultural evil through the edification and cultivation of moral sensibilities: In “Repugnance as a Constraint on Markets,” Alvin E. Roth finds that “distaste for certain kinds of transactions is a real constraint, every bit as real as the constraints imposed by technology or by the requirements of incentives and efficiency.” He also finds that “while repugnance can change over time, change can be quite slow.” This presumably applies to the decrease...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved