Wishful Thinking:

Once again, Republicans can be accused of relying on wishful thinking. Whether it is predicting the results of elections or increasing revenue from tax collections, Republicans have failed to put to use the basics off arithmetic.  "No Republican will vote for higher tax rates. We will generate revenue from eliminating deductions and loopholes," Sen. Lindsey Graham of South Carolina said on CBS' "Face the Nation."  This sounds much like Carl Rove and Dick Morris election predictions.  Virtually every reliable economist has indicated that even by eliminating all deductions, sufficient revenue to balance the budget cannot be raised.  Just to prove the point, since 2001, tax revenue as a percentage of GDP has fallen from 19.5% to a low of 15.4% by 2011.  When spending is 21% of GDP a gap of 6% of GDP cannot be closed by eliminating loopholes.  Wile closing both individual and corporate loopholes will raise tax revenue, both personal and corporate income tax rates for those at the top must be increased in order to provide the necessary revenue to run the government.  For too long, to many individuals and corporations have managed to escape paying the costs of government and it is past time to rectify this problem.  Whether Republicans can be made to realize that wishful thinking on their part does not replace arithmetic remains to be seen.