Someone might mention ... gambling (taking chances) in the public sector?

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It does seem with the latest news that while many taxpayers would like to "revolt" against the current U.S. tax regime, and that current public finances can not keep up with spending, that no one will in all probability lose an eye or a tooth over the current debate about the 'fiscal cliff' that could bring our administration to a screeching halt.  People with ordinary sense do know that stopping a federal government anywhere is a dangerous thing for its populace, but due to the current jostling and elbowing in Washington, D.C., and the coming recess for the holidays, the cries of various legislators and officials, and of the journalists who follow them, might become even more shrill after returning from the break if legislators can not come up with a bill in the meantime.  Remember the House and Senate have seemingly had a hard time even agreeing to present conditions for the 2012 Farm Bill, actually quite an important bill, but one that has many accomodations and provisions to promote modern and efficient agriculture in America at this point. 

The issue with the 'fiscal cliff' is there are apparently many wise people who believe such a difficulty should be solved with an official 'tax reform' bill that would re - work some provisions of current law and while editing that, add some new ones.  This is a recipe for more gridlock and the wrong approach as the current tax laws do not allow for either the executive or legislative, the two parties concerned here with the 'fiscal cliff,' to do proper arithmetic about what efforts will be employed to manipulate federal expenditures, revenue collection, and so forth; so it is palatable for a restless taxpaying populace who want to see a resolution to the problem, but who apparently do not see as well the kind of radical change that is needed, not just in spending cuts or revenue collection, but perhaps even in the way the federal government in our country administers the tax system. 

The main theme proposed by the President does appear to be revenue collection and reducing deductions, and this is an important and appropriate approach given the level of current federal outlays that finance federal programs, the wars, trade and commerce and so on.  Revenue collection with a ten thousand page (or more) set of tax laws in the entirety is not easy, especially insofar as loopholes open and close in this text, and because the current text allows fewer and fewer such loopholes for the taxpayer, yes, but for the federal government as well given the principle of revenue neutrality, progressive character in view of deductions, and other things like taxpayer advocacy, credits, arithmetic limitations and so on.  So how does the President allow for a new and innovative plan that closes the trillions of dollars in deficit spending that arise in the current administration?  The answer used to be that we could allow for greater scope in Treasury and Federal Reserve operations with respect to the national debt, but this seems not to be feasible any longer as to pursue such an avenue right now would adversely affect U.S. Treasury debt ratings.  Funds to the states could also be cut off, but no one really knows anyone in favour of that at this point.  What would you do?

In viewing the problem, one might just mention that the U.S. is going or recently has traversed a time of very serious and hellish wars, more serious for the federal government than the wars between Athens and Sparta, or the wars against the Persians in antiquity were for their overseers.  With this as background for any sort of fiscal reform, and the effects and fiscal and economic baggage of the Great Recession, what is the sense in even attempting to resolve the fiscal crisis?  Note in any event that something has to be done to reform the federal tax structure (revenue collection) and outlays (federal spending,) and no one has had any ideas on this for many years that are new, primarily because officials in our nation's capital have clung to a model of public finance that is kind of moderate and that fails with respect to, i.e., the expenditures of a ten - year (or more) war, the gray - market economy in which there are no taxes, nor sales nor income taxes for example; and that the value added, income and gains, etc., to the wealth in our economy right now is a catastrophe with respect to the recent recession.  The reasons for this are palpable in any federal revenue collection illustration, many of which were quite rosy and optimistic looking forward, up until the recently recent past.  The fact is, personal income taxes will have to increase, and they might have to increase greatly before eventually being reduced again, and this is especially true as the business tax rates are high enough and the Treasury only derives so much revenue from business, usually relatively predictable based upon fiscal filings, and with little potential for an increase in revenue collection, even if the executive branch compels the House and Senate to "set and forget" with new, increased business tax rates - such a thing would be anti - growth and anti - enterprising, too. 

The increase in personal income taxes, people like me used to believe, should come from the elimination of certain deductions and what those should be has been a subject of debate for years.  Increasing the rates will not comprise the mysterious and magical alchemy that will relieve the system of its deficit burden and much less of its spending and other deficit tendencies.  Right now, it does seem that any legislation could increase progressive federal rates and would at least suspend certain deductions for a period of time.  The Great Recession as its circumstances have proven, proposes no windfall with respect to federal coffers and taxes, even with respect to a needed increase in rates.  Remember that the federal government has become much more expensive and has as well become more a partner in building people's lives.  While I know little about the country personally, a model like that of Sweden for an at least temporarialy reformed U.S. tax regime and additonal revenue collection might solve the problems of the revenue side of federal operations, and with the idea in mind that the wars and the recession have been expensive and while the federal government has thereby worked to muddle through with its social programs that have changed lives, even saved lives.  Now is the time to recognize such a thing and to allow the heartiest we have to address these individual issues.