Saturday, April 18, 2009

Spend & Tax

We can't call em "Tax and Spend Liberals" anymore. The MO has been flipped. Spend $1 Trillion first, then raise taxes to pay for the spending.

The TaxProf blog explains how Obama's spending will result in a doubling of our taxes over time.


Regardless of what politicians tell you, any additional accumulations of debt are, absent dramatic reductions in the size and role of government, basically deferred tax increases. Remember the old saw? "You can pay me now or you can pay me later, with interest."
To help put things in perspective, the Peterson Foundation calculated the federal government accumulated $56.4 trillion in total liabilities and unfunded promises for Medicare and Social Security as of September 30, 2008. ... If $56.4 trillion in financial commitments is too big a number to digest, think of it as $483,000 per American household, or $184,000 for every man, woman and child in the country. ...
---
Unless we begin to get our fiscal house in order, there's simply no other way to handle our ever-mounting debt burdens except by doubling taxes over time. Otherwise, our growing commitments for Medicare and Social Security benefits will gradually squeeze out spending on other vital programs such as education, research and development, and infrastructure.


U/T: Instapundit

No comments: