LJWorld.com weblogs Loyal Opposition
The Future for the "Have Nots"
This chart is from OMB – they work for Mr. Obama not the Republicans. What this chart says is that we will be broke like Greece by 2020 (or earlier). We are spending 60% more than we take in every year. We will be increasing that amount by about $300 billion per year each year into the future. Our annual deficit today is greater than the total federal income tax take (from all of us). If we doubled the income tax, we could not get out of the red.
Many of those costs are in social security, social services, Medicaid, Medicare and the new health care initiative. The social security trust fund would have avoided the coming trillion dollars a year payment to social security but we spent it (right now income more or less equals outgo.). All the health programs are/will be expanding faster than inflation. Nothing has been done to slow that rate. Exactly how to slow it without rationing is debatable.
States like Kansas cannot run a deficit. To that end, the state increased our sales tax by 20 percent. The county is increasing our property tax by 9 percent. The school district is increasing the property tax burden by 4.4 percent. If we pass the library initiative, the city tax take will go up by 7.5 percent. Still we had to cut some services. As the federal government cuts, will we be expected to increase our local taxes to hold the “poor” harmless?
Now we could be draconian at the federal level. We could increase income taxes by 50%. We could reduce social security by 5% per year starting now. In ten years that means a cut of about half. We could double the Medicare payment for all and perhaps buy a few years before it goes back into the red. Combine this with a mild form of rationing as in Great Britain and we might just flatten out medical costs for the elderly (not for everyone). We could eliminate the subsidy under Obama care for all but the really poor consistent with the Medicare change above). All of those changes will hit about 50% of the population – the middle – those working for a living or retired on fixed incomes. The top are insulated. Just how long do you think the impacted groups will be willing to absorb such hits while the ”poor” are held harmless (Medicaid, CHIPs, welfare, schools (the latter two big at the state and local level))?
Now there is this insatiable demand for more goodies from the Lawrence blog world hoard. People there is no money. The game is over. It is time to pay the piper. The “have nots” are going to have even less!