[nhaehnle]

The question becomes then, how much does that GDP growth increase federal revenues? If it doesn't increase it by $1 per $1.73 in GDP, it's still a net loss IMHO.

Why? Money is created by federal government and is therefore worthless to the federal government. It can just create more of it. It just makes no sense to look at the federal government (or any monetarily sovereign government for that matter) in terms of how much money they make.

On the other hand, if government revenues are increased by less than 1$, this means that someone, somewhere in the economy now has more net financial assets because of that.

Is that a bad thing? In some cases perhaps, but certainly not in general.

Is it valuable to have a high GDP and a high federal deficit? Or will that just end up in necessarily higher taxes down the road (so we don't end up like Greece) that will wipe out that GDP growth?

History tells us that, for monetarily sovereign governments, their debt is not paid back. Therefore, the answer to your second question seems to be a very clear "No, it will not lead to higher taxes, but it will lead to better economic development right now, which likely also improves the growth path in the long run."