Tuesday, December 4, 2012

Fwd: debt

'Former congressmen Chris Cox and Bill Archer warn:  "When the accrued expenses of the government's entitlement programs are counted, it becomes clear that to collect enough tax revenue just to avoid going deeper into debt would require over $8 trillion in tax collections annually.  That is the total of the average annual accrued liabilities of just the two largest entitlement programs, plus the annual cash deficit."  In contrast, the total adjusted gross income of those earning more than $66,000 a year was $5.1 trillion and net corporate income was $1.6 trillion.  Confiscate it all and there still isn't enough to pay the annual increase.  And you could only steal the money once, since people wouldn't keep working if government left them with nothing.


Unfortunately, the near-term budget problem pales compared to the longer-term challenge.  The national debt is $16.3 trillion, more than the annual GDP.  Toss in all current unfunded federal liabilities and the number is $222 trillion, according to economist Laurence Kotlikoff.'




'if you gaze into the abyss, the abyss gazes also into you'


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