Buy custom IMF Chief Urges Tax Rises to Tackle US Deficit

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We see from the government budget (T-G) that if government spending decreased, keeping taxes at there present level, government revenue would increase and help to lower the fiscal deficit. However, government spending has significantly increased, as Mr. Rato points out, due to increased defense spending, reconstruction efforts in the Gulf Coast, and emergency aid for Hurricane Katrina relief efforts...

Rato points out, due to increased defense spending, reconstruction efforts in the Gulf Coast, and emergency aid for Hurricane Katrina relief efforts. Therefore, Mr. Rato calls for increased taxes to ameliorate the U.S. fiscal deficit and thus the current account deficit. Looking at the current account deficit as arising from the widening U...

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