[sheeshkebab]

Don’t forget how raising taxes in 90s wiped out all deficits and large chunk of debt in early 2000’. The worry back then was then how US would lose leverage in the world if all its debts were gone.

Not saying that current level of debt is any good, there are just multiple levels to that story.

[topmonk]

Raising taxes didn't do it. It was the horrendous hype generated by the dot com bubble. Having a net surplus was just a blip on the radar which quickly became unattainable as soon as the resulting crash.

[sheeshkebab]

Capital gains tax was raised in late 80’s and 90’s.

[topmonk]

I'm not denying that. I just don't think the explanation for why the deficit was eliminated was because of that.

[lsniddy]

coupled with Alan Greenspan's promotion of home ownership which eventually led to the subprime collapse