” . . . Based on the CBO’s data, I calculate a fiscal gap of $202 trillion, which is more than 15 times the official debt. This gargantuan discrepancy between our “official†debt and our actual net indebtedness isn’t surprising. It reflects what economists call the labeling problem. Congress has been very careful over the years to label most of its liabilities “unofficial†to keep them off the books and far in the future. . . . ”
Excerpt:
“…the IMF is saying that closing the U.S. fiscal gap, from the revenue side, requires, roughly speaking, an immediate and permanent DOUBLING of our personal-income, corporate and federal taxes as well as the payroll levy set down in the Federal Insurance Contribution Act.” (note: FICA = Social Security)
I’ve been saying this for months. With a deficit roughly equal to the entire income tax revenue, a balanced budget would require an immediate DOUBLING of taxes — on EVERYONE, not just the rich! Tinkering at the edges won’t do it! And this would throw us unto a depression overnight. It’s going to get very ugly! This morning’s open is nothing compared to what’s coming!
- Wotan
