Monday, June 01, 2009

Future Watch: Tax Increases (whether you want them or not)

This article has a nice interactive graphic at the top showing current debt totals for various government programs and for individuals.

USA Today
Leap in U.S. debt hits taxpayers with 12% more red ink
By Dennis Cauchon, Posted 3d 16h ago

Taxpayers are on the hook for an extra $55,000 a household to cover rising federal commitments made just in the past year for retirement benefits, the national debt and other government promises, a USA TODAY analysis shows.

The 12% rise in red ink in 2008 stems from an explosion of federal borrowing during the recession, plus an aging population driving up the costs of Medicare and Social Security...

...USA TODAY used federal data to compute all government liabilities, from Treasury bonds to Medicare to military pensions.

Bottom line: The government took on $6.8 trillion in new obligations in 2008, pushing the total owed to a record $63.8 trillion.

The numbers measure what's needed today — set aside in a lump sum, earning interest — to pay benefits that won't be covered by future taxes...

The Feds are mortgaging your future, your kid's futures, and your grandkid's futures - if not beyond - and the hole is getting deeper every day. Yet no one seems to be smart enough to stop digging. At some point, the IMF or some other world body is going to step in and require the US to make good on the debt it has incurred - meaning your taxes WILL go way up (and social services will go way down, ala California). This scenario has no other end. The government had borrowed more than it can possibly repay at current income levels.

Or rather, than YOU can pay, since you're the one who is going to be paying all this debt. Governments don't earn their money anymore charging tariffs and such as the constitution asserted, you know. People make money, and the government takes your money away to pay its bills.

Think about that the next time you want "government" to solve some problem for your community.

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