If e.g. taxes are raised, and GDP decreases, it is theoretically possible that net revenues decrease even though tax rates have increased. Or, revenues may increase but the debt to GDP ratio still increases (because the lower GDP) and borrowing costs increase as a result.
Note that this means, to me, we need to get our shit together sooner instead of later. A little austerity now may prevent outright default later when significant austerity is forced.
alt Hacker News
If e.g. taxes are raised, and GDP decreases, it is theoretically possible that net revenues decrease even though tax rates have increased. Or, revenues may increase but the debt to GDP ratio still increases (because the lower GDP) and borrowing costs increase as a result.
Note that this means, to me, we need to get our shit together sooner instead of later. A little austerity now may prevent outright default later when significant austerity is forced.