Home
/
RELIGION & LIBERTY ONLINE
/
Acton Commentary: Do Less with Less
Acton Commentary: Do Less with Less
Jan 14, 2026 5:35 PM

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
What that viral ‘wealth inequality’ video gets wrong
Globalization does not merely mean petition; it also means that the best minds from around the world can collaborate and, when necessary, correct one another’s conclusions. Scientists rely on this interplay of minds but so do other disciplines, not least economics, where clear thinking is perpetually in short supply. A foreign free-market think tank has made a e critique of a viral video titled “Wealth Inequality in America,” which has racked up more than 20 million views on YouTube. The...
How Brexit helps ‘the least of these’
Brexit may suffer from the most uniquely invertedpublic perception in modern international affairs. The British referendum to leave the European Union – the most successful rebellion against global governanceto date – is depicted as a racist and xenophobic retreat into an isolated and atomized existence.In fact, it is only Brexit that allows the UK to leave behind Brussels’ schedule ofsubsidies and tariffs that deny developing nations access to the world’s largest market,setting millions on a path to independence and self-sufficiency....
Jack Donahue, RIP
It was with deep sadness that I learned today of the passing of John F. “Jack” Donahue. Jack truly was a renaissance man, packing significant and lasting plishments into his 92 years. If ever it could be said that I encountered a singular, real-life saint, Jack would qualify as that one person. At first blush, what impressed me most about Jack was his devotion to his wife of 70 years, Rhodora. The consummate family man, Jack raised 13 children with...
The Social Capital Project: Reviving ‘associational life’ in America
Over the past few decades, America has experienced a wave of drastic economic and social disruption. In our search for solutions, we’ve tended to look either to ourselves orthe State, resulting in a clash between individualism and collectivism that forgets or neglects the space between. But what might be happening (or not happening) in those middle layers of society, from families to churches to charities to our economic activities? What might we be missing or forgetting about in those mediating...
Understanding the President’s Cabinet: Vice President
Note: This is the post #17 in a weekly series of explanatory posts on the officials and agencies included in the President’s Cabinet. See the series introductionhere. Cabinet position:Vice President (VPOTUS) Current: Mike Pence Succession:The Vice President is second in the presidential line of succession. Primary Duties:The Vice President is also the President of the Senate, and in this role has two primary functions: to cast a vote in the event of a Senate deadlock (which Pence has done twice)...
How anti-Catholic bias from 140 years ago affects Protestant religious freedom today
WhenJames Blaineintroduced his ill-fatedconstitutional amendmentin 1875, he probably never would have imagined the unintended consequences it would have over a hundred years later. Blaine wanted to prohibit the use of state funds at “sectarian” schools (a code word for Catholic parochial schools) in order to inhibit immigration. Since the public schools instilled a Protestant Christian view upon its students, public education was viewed as a way to stem the tide of Catholic influence. While the amendment passed by a large...
Hemingway, Hollywood and Communism
Red-phobia is once again all the rage. Today, the question asked by the media and politicians is whether Russia had a hand in turning the U.S. election in Donald Trump’s favor. Decades ago, Mother Russia was the source of much consternation and breast beating following both World Wars – the First and Second Red Scares, respectively, munist conspiracies were exposed and prosecuted while others were merely speculations of the tin-foil hat variety (watch out for that fluoridated water!). The difference...
Book Review: Roger Scruton’s ‘On Human Nature’
On Human Nature. Roger Scruton. Princeton University Press. 2017. 151 pages. On Earth Day, April 22, tens of thousands of activists held the first “March for Science” in cities around the world. “Science brings out the best in us,” Bill Nye, the star of two eponymous television programs about science, told the assembly in Washington. “Together we can – dare I say it – save the world!” he said, earning the enthusiastic approval of an estimated 40,000 people. Many of...
Should Martha Stewart iron her own shirts?
Note: This is post #33 in a weekly video series on basic microeconomics. Comparative advantage explains why people trade and what goods they should trade. To illustrate the concept parative advantage, Marginal Revolution University’s Alex Tabarrok asks, “Should Martha Stewart iron her own shirts?” Even if Martha Stewart has an absolute advantage in ironing shirts, her opportunity cost is simply too high. (If you find the pace of the videos too slow, I’d mend watching them at 1.5 to 2...
Explainer: What you should know about NAFTA
The Trump administration formally announced to Congress today that it intends to renegotiate the North American Free Trade Agreement (NAFTA). According to the Associated Press, U.S. Trade Rep. Robert Lighthizer sent a letter to congressional leaders to start 90 days of consultations with lawmakers over how to revamp the pact. Here is what you should know about the perennially controversial trade agreement. What is NAFTA? NAFTA is the initialism for the North American Free Trade Agreement, an agreement signed by...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved