I don’t like tax increases, but I think we have to be realistic. When we have a $2 trillion deficit, the solution is probably not going to be entirely spending cuts. And we also have to understand that the recent rounds of tax cuts, they didn’t have the benefits that were promised.
And the reason they didn’t have those benefits is because our problem in our economy isn’t that corporate profits aren’t high enough. Our problem is that we don’t have the right set of incentives. We don’t have the things that earn the most money also being things that create good jobs, that build a stronger economy.
And so if you have a situation where the most profitable activities are offshoring, are speculating on Wall Street, are building another app in Silicon Valley, there’s no economic theory that says that’s going to work for the American people. And so I think we do need to use tax policy, we do need to use regulation to try to bring those interests back into alignment.
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