Volcker: Taxes likely to rise eventually to tame deficit

Any real threat of higher taxes would quickly shoot the tires out of the liquidity-driven stock rally. Raise taxes and lose the next election or spend, devalue, and hope nobody notices? I would go with the latter.

Though he acknowledged that both were still unpopular ideas, he said getting entitlement costs and the U.S. budget deficit under control may require such moves. "If at the end of the day we need to raise taxes, we should raise taxes," he said.

Source: reuters.com