That’s Fuzzy Math: Why Obama’s Budget Doesn’t Add Up for Future Generations
Michael Boskin, a well-respected professor of economics at Stanford University and a senior fellow at the Hoover Institution recently wrote an eye-opening piece on the future debt and taxation implications on President Obama’s 2010 budget plan. For anyone that’s been paying attention, it’s no surprise that the President’s budget calls for running substantial deficits indefinitely. It’s completely fair to note that President Obama inherited a bad economy and an already mind-popping budget deficit. But, what I found so interesting about Mr. Boskin’s analysis is that he sheds some light on Obama’s contribution to our future debt problems. Mr. Boskin asks the simple question, “What would happen to budget deficits and the national debt if Obama did not institute his new government programs?”
Well, the result of Mr. Boskin’s analysis are staggering. Yes, Mr. Boskin was an advisor to President George H.W. Bush (aka Bush 42). However, let’s say for a second that Mr. Boskin is off by 25%. You are still talking about a tax burden of over $120,000 per taxpayer. I don’t know about you, but I don’t have that kind of money laying around. Below is a summary of the implications of this study. Check out the entire article via the link below at WSJ.com. No matter who you voted for in November 2008 and no matter who you support today, it is critical that ALL AMERICANS understand what the government is signing us up for in terms of future debts and taxes.
“What does $6.5 trillion of additional debt imply for the typical family? If spread evenly over all those paying income taxes (which under Mr. Obama's plan would shrink to a little over 50% of the population), every income-tax paying family would get a tax bill for $163,000. (In ten years, interest would bring the total to well over $200,000, if paid all at once. If paid annually over the succeeding ten years, the tax hike per year would average almost $26,000.) That's in addition to his explicit tax hikes. While the future tax time-bomb is pushed beyond Mr. Obama's budget horizon, and future presidents and Congresses will decide how it will be paid, it is likely to be paid by future income tax hikes as these are general fund deficits.”
Read the entire article at WSJ.com.
Well, the result of Mr. Boskin’s analysis are staggering. Yes, Mr. Boskin was an advisor to President George H.W. Bush (aka Bush 42). However, let’s say for a second that Mr. Boskin is off by 25%. You are still talking about a tax burden of over $120,000 per taxpayer. I don’t know about you, but I don’t have that kind of money laying around. Below is a summary of the implications of this study. Check out the entire article via the link below at WSJ.com. No matter who you voted for in November 2008 and no matter who you support today, it is critical that ALL AMERICANS understand what the government is signing us up for in terms of future debts and taxes.
“What does $6.5 trillion of additional debt imply for the typical family? If spread evenly over all those paying income taxes (which under Mr. Obama's plan would shrink to a little over 50% of the population), every income-tax paying family would get a tax bill for $163,000. (In ten years, interest would bring the total to well over $200,000, if paid all at once. If paid annually over the succeeding ten years, the tax hike per year would average almost $26,000.) That's in addition to his explicit tax hikes. While the future tax time-bomb is pushed beyond Mr. Obama's budget horizon, and future presidents and Congresses will decide how it will be paid, it is likely to be paid by future income tax hikes as these are general fund deficits.”
Read the entire article at WSJ.com.
posted by Blogging Man @ 4:14 PM
Seed Newsvine
0 Comments:
Post a Comment
<< Home