If you choose to go back and check my posts during the election campaign, I for one proposed that the debate between the two candidates as to who would cut taxes the most was absolutely ridiculous. Even before the depth of the financial crisis became better known, I was proposing that taxes had to be increased, not decreased.

With the decline in tax revenues cited by BobFL above, combined with the continued deficit-producing spending by Congress, the tax increase I predicted is inevitable. As I've said before, the fact that the federal tax rates are near an all-time historical low hasn't escaped the attention of those in Congress who might see the need for increased revenue.

Bucco, this isn't a problem that can be placed on the doormat of this President or even this Congress. They have both continued the spending practices of elected officials before them, going back at least a decade. One big difference is that the earlier spendthrifts did so in the environment of strong economic conditions, not the financial crisis and unemployment that exists now.

What's sad is that it doesn't appear that any of these elected officials will be among those that really change this spendthrift behavior. Chances are that the majority of the 435 need to turn over before much will happen. Even then it'll be pure chance that we get some replacements that really are fiscal conservatives.

The only other hope we have is that the sovereign debt markets give the U.S. some "tough love" by refusing to buy more of our debt. If that happens, after the Fed prints as much more money as is feasible, Congress will have no choice but to dramatically cut spending. The arguing that will occur will make the recent debate in the California legislature look like kindergarten. And we will ALL feel the effects very, very quickly. First will be the quick increase in inflation from the money-printing. Then will come the reality of dramatically reduced government services. Remember what Congress has to work with. If Congress was to eliminate all government spending for all items other than debt service, Social Security, Medicare and Defense, that still would not produce a balanced budget. We are in deep do-do.