Two problems: 1. There is zero political will (yet) to raise taxes. You will never get elected on a tax raising platform. 2. Increasing taxes means a decre

Two problems: 1. There is zero political will (yet) to raise taxes. You will never get elected on a tax raising platform. 2. Increasing taxes means a decrease in aggregate demand, which will slow the economy -- an economy already in the doldrums. That's why it's such a precarious situation.