The best explanation yet of what our kids will face when they grow up.
This is an audio and visual presentation, so be ready to listen well.
Bottom line: "The problem is that the projection is based upon an assumption that has no historical basis. Using the historical rate of increase, Medicare and Medicaid alone would consume all tax collections by 2044 if the tax rate remained at the 2007 level of GDP."
Medicare and Medicaid alone... that doesn't include:
In 2007, Medicare and Medicaid only amounted to 20% of all government spending. So to be in line with the historical trend, in 2044, without raising taxes enormously on your kids to make up for the money needed for 80% of the budget (!!!), the government will only raise enough revenue through current tax rates to pay for Medicare and Medicaid alone.
- Social Security
- Mandatory spending on other entitlements
- Non-defense, discretionary spending
- Interest payments on the debt our country owes
I came away from this totally ticked at Bush and our Congress of the last eight years. It was on their watch that these problems have grown to the scale that they have.
Electing politicians that seek to increase mandatory spending will only exaccerbate the problem.
What future do you want for our kids?