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| Economy |
| We'll Need to Raise Taxes Soon - VAT? |
| 2009-06-30 |
| The poor budget outlook may impel the administration to follow up health-care legislation with an effort to fix Social Security. The shortfall in Social Security's trust funds -- which adds to the long-term deficit -- is much smaller than the companion problem in Medicare funding. Public anxiety over deficits may make this fix possible now even though it has been elusive for years. If this could be done, confidence in Washington's capacity to address its debt challenge would rise. But even with a Social Security fix the medium-term deficit outlook will be poor. Sometime soon, perhaps in 2010, Main Street and financial markets will exert irresistible pressure to reduce the deficit. The problem is the deficit's sheer size, which goes way beyond potential savings from cuts in discretionary spending or defense. It's entirely possible that Medicare and Social Security will already have been addressed, and thus taken off the table. In short we'll have to raise taxes. Today, the U.S. ranks next to last among the 28 Organization for Economic Cooperation and Development nations in total federal revenue as a share of GDP. Our federal revenues represent 18% of national output, down from 20% just 10 years ago. That makes the mismatch between our spending and our revenue very large, producing the huge deficits we face. We all know the recent and bitter history of tax struggles in Washington, let alone Mr. Obama's pledge to exempt those earning less than $250,000 from higher income taxes. This suggests that, possibly next year, Congress will seriously consider a value-added tax (VAT). A bipartisan deficit reduction commission, structured like the one on Social Security headed by Alan Greenspan in 1982, may be necessary to create sufficient support for a VAT or other new taxes. |
| Posted by:GolfBravoUSMC |
| #7 |
| Posted by: Barack Oborg 2009-06-30 20:01 |
| #6 #4 "Resistance is futile. Your life as it has been is over. From this time forward, you will service us." Posted by: Barack Oborgma Not as long as I have a short rope, a long drop, and a good foot to assist the maneuver, it ain't. It's gettin' closer and closer to time for pitchforks and shotguns. It's well past time Congress learned once again they are our servants, not our masters. |
| Posted by: Old Patriot 2009-06-30 19:04 |
| #5 VAT Is The Worst Tax |
| Posted by: Bright Pebbles 2009-06-30 18:28 |
| #4 "Resistance is futile. Your life as it has been is over. From this time forward, you will service us." |
| Posted by: Barack Oborgma 2009-06-30 18:00 |
| #3 When you pay over 50% of your income on federal, state, and local taxes, fees, and levies, you exist to serve the state. Nice how the Donks finally got a work around on the 13th Amendment they unsuccessfully opposed in the first place. In the past the serf was tied to the land because the land was the source of income for the lord. Now they allow the serfs to move around, but still keep the income generated for the ruling class to use as they see fit. |
| Posted by: Procopius2k 2009-06-30 17:20 |
| #2 After pigs fly, It's entirely possible that Medicare and Social Security will already have been addressed |
| Posted by: Anguper Hupomosing9418 2009-06-30 16:27 |
| #1 Today, the U.S. ranks next to last among the 28 Organization for Economic Cooperation and Development nations in total federal revenue as a share of GDP. Love the way these guys always ignore state and local taxes when comparing to other countries. |
| Posted by: DoDo 2009-06-30 16:15 |