Do the presidential candidates live in a fantasy world? Or do they assume that we just can’t handle the truth?
In the real world people need to pay their bills. So why do the candidates assume that they can hand out goodies to all and sundry and no one has to pony up?
Barack Obama says he’ll reduce taxes for 95% of working families. John McCain plans to cut corporate taxes. Neither specifies where he will make up for the lost income. But if they don’t offset the lost revenue and just add to the deficit, future taxes will have to go up.
Everyone wants to cut taxes. No one wants to say how he’ll pay for it. Milton Friedman said there’s no such thing as a free lunch. Someone has to pay. We all know this. If the politicians acted like grown-ups and treated us like adults—leveling with us—maybe we would trust them just a little bit more.
Douglas R. Tengdin, CFA
Chief Investment Officer
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