No, but taxing is a good way to pull dollars out of circulation and destroy demand. In fact, it's probably a better lever to pull than the Fed funds rate. The

No, but taxing is a good way to pull dollars out of circulation and destroy demand. In fact, it's probably a better lever to pull than the Fed funds rate. The spending problem in question is deliberately supported by voters, who oppose lowering spending or raising taxes. Running the government on a deficit lets you simulate the benefits of economic growth without all that pesky growing.