We all hope that our tax dollar will be use productively for creating capital asset than instant gratification through revenue deficit which only increase the burden for future generations but Martin Armstrong is very categorical when asked on this subject. He writes in his blog
“That proposition assumes the government can actually do anything correctly. There is absolutely no evidence of that whatsoever in the historical records going back thousands of years. I do not care how much they raise taxes. The pension crisis alone will wipe out government as we know it. For every person that retires, they must replace them and the cost of government doubles. A child with a pocket calculator can give you a better forecast. It is absolutely impossible for this to ever end nicely. The system is not sustainable.“
I agree with this view and I believe a tax hike is coming across most of the world as govt deficits increase and they falls short on pension and health liabilities. This will be in addition to the lost revenue on account of cooling off of real estate markets.