"For years, the government has gotten by without having to produce the kind of financial statements that are required of most significant for-profit and nonprofit enterprises [...] it does not include the unfunded liabilities of Medicare, Social Security and other outsized and very real obligations. [...] We most often hear about the alarming $15.96 trillion national debt (more than 100% of GDP), and the 2012 budget deficit of $1.1 trillion (6.97% of GDP). As dangerous as those numbers are, they do not begin to tell the story of the federal government's true liabilities. The actual liabilities of the federal government -- including Social Security, Medicare, and federal employees' future retirement benefits -- already exceed $86.8 trillion, or 550% of GDP. [...] 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. [But] if the government confiscated the entire adjusted gross income of these American taxpayers, plus all of the corporate taxable income in the year before the recession, it wouldn't be nearly enough [...] to fund the growth of U.S. liabilities."This means political malfeasance and governmental incompetence of titanic proportions. We need a new generation of leaders in DC to steer the ship of state, which means electing more reality-minded and ethical people like MIT alumnus Representative Tom Massie!
29 November 2012
True US Debt ~ $87T = 550% GDP = $8T/Yr Tax
Bipartisan commissioners on entitlement and tax reform, Chris Cox and Bill Archer, shock us with facts in their WSJ OpEd piece Why $16 Trillion Only Hints at the True U.S. Debt...