Blogs QueenOfYou84's
THE BIG ISSUE: $53 trillion in unfunded liabilities
- May 31, 2009 19:56:03
- Read all 1 comments
- 0 raves
THE BIG ISSUE: $53 trillion in unfunded liabilities
19,831 Messages Sent The Benefit: Success with this campaign would reduce the pain of future increased taxes and/or severe benefit cuts to programs like Medicare and Social Security. Cuts in government spending would provide expanded resources to the productive economy, spurring growth and making you, and your neighbors, more affluent. Such cuts would also reduce the portion of your taxes that go to pay the interest on the national debt.
The federal government has made a lot of promises in your name. It has committed you to pay most of the health care expenses of the elderly (Medicare) and to provide them with a small stipend (Social Security). It has also borrowed trillions of dollars, to pay current expenses, that your children and grandchildren will have to repay. Unfortunately, future revenues will be insufficient to fulfill these promises.
The Government Accountability Office estimates the future shortfall in funding at $53.3 trillion (Page 6). Other experts say the number is almost certainly higher. This means that every full-time worker owes a staggering $440,000, courtesy of government excess. Eventually, that debt must be paid, either in higher taxes, or in reduced benefits. These numbers represent a looming crisis of staggering proportions. If you understand the situation, and want to send a message now, click here to jump down the page.
What can be done?
Can the politicians raise taxes to cover the shortfall? The answer is no. The Government Accountability Office estimates that federal taxes would have to double in order to do the job. Can you afford to double your taxes? Could you afford to pay $440,000 in government debts, even if you had two decades to do it?
Would massively higher taxes even work? The answer is no. Higher taxes don't necessarily result in higher revenues to the government. Higher taxes always lead to increased tax avoidance, a decreased incentive to work and invest, and fewer dollars available to capital markets. The result can be less revenue rather than more.
Can we grow our way out of the problem? The answer is again no. The Government Accountability Office estimates (Page 11) the economy would have to grow at a double digit rate for the next 75 years!, but . . .
In the real world our economic growth is only in the low single digits, and even this rate of growth may be hard to sustain as the weight of rising government expenditures takes more and more rescources from the productive economy.
Indeed, the current debt estimate of $53.3 trillion already takes economic growth into account. If the rate of growth should prove lower than expected then the real size of the unfunded liabilites will be even higher. Those who look to economic growth to magically cure this problem are whistling past the graveyard.
What about benefit cuts for Medicare and Social Security? This might help the government balance its books, but at the cost of breaking government promises and pushing expenses back on the elderly.
What about borrowing? Can the politicians borrow their way out of this mess? Alas, no. Moody, the credit rating service, has already issued a warning that the federal government's credit rating will be lowered if doesn't reduce its debt burden. Practically speaking, a lower credit rating means higher interest rates on federal government debt. And that means more and more of your taxes will go to pay the interest on that debt -- making BOTH the inevitable tax increases and benefit cuts more painful.
Meanwhile, the politicians continue to run deficits year after year, in spite of the looming financial crisis. More debt means more interest charges. Interest payments will already consume $272 billion in 2008 (Page 56). This means that nearly one dollar out of every four you pay in personal income taxes will go to these interest payments. (The personal income tax is expected to bring in $1.2 trillion in 2008 [Page 30]).
One sure way to improve things would be to . . .
Cut government spending now
Stop running deficits now
Start paying off the government debt now
And thereby reduce what we will owe in future interest payments
It's time to stop whistling past the graveyard. It's time to start facing facts, which means we must start cutting government spending, now -- Downsize DC! Please use the form below to send Congress a message. Make Congress aware that you're aware of the government's dire financial plight. Tell them you want reduced spending now, a balanced budget now, and debt retirement, starting now.
Sending a message is easy. You can write as much or as little as you want. And we start with a brief sentence or two for you. We do this so that . . .
The most important point of this campaign is not lost on the Congressional office.
No one can hijack our system for a purpose inconsistent with Downsizing DC.
But you can still personalize the rest of your message — explain why you were motivated to send this message, or what you believe is the most compelling argument in support of your position.
Are these messages read even with so many folks sending a common first line? You bet they are! Congress cannot afford not to pay attention. And many DC Downsizers get responses from their Congressmen. If you receive a letter, feel free to share it with us at comments@DownsizeDC.org.
If you've used our Educate the Powerful SystemSM before just enter your user email address and password, and hit GO. You'll be taken to a screen where you can add your own comments to the message to your elected representatives.
If you're using our Educate the Powerful SystemSM for the first time, please fill out the form for new users. This information is used to direct your message to the correct Senators. Please provide your own password. Do not let the system create one for you. Remember your password. It will allow you to use our system easily in the future for other issues.
Your Letter to Congress
Below is the text of the letter we will send on your behalf...
I am aware that the federal government has future unfunded liabilities estimated at $53 trillion. Please stop ignoring this problem. Please start reducing spending now. Balance the budget now. And start retiring the debt now so you can stop spending so much of my tax money on interest charges. Your personal comments here.
https://secure.downsizedc.org/etp/campaigns/89
19,831 Messages Sent The Benefit: Success with this campaign would reduce the pain of future increased taxes and/or severe benefit cuts to programs like Medicare and Social Security. Cuts in government spending would provide expanded resources to the productive economy, spurring growth and making you, and your neighbors, more affluent. Such cuts would also reduce the portion of your taxes that go to pay the interest on the national debt.
The federal government has made a lot of promises in your name. It has committed you to pay most of the health care expenses of the elderly (Medicare) and to provide them with a small stipend (Social Security). It has also borrowed trillions of dollars, to pay current expenses, that your children and grandchildren will have to repay. Unfortunately, future revenues will be insufficient to fulfill these promises.
The Government Accountability Office estimates the future shortfall in funding at $53.3 trillion (Page 6). Other experts say the number is almost certainly higher. This means that every full-time worker owes a staggering $440,000, courtesy of government excess. Eventually, that debt must be paid, either in higher taxes, or in reduced benefits. These numbers represent a looming crisis of staggering proportions. If you understand the situation, and want to send a message now, click here to jump down the page.
What can be done?
Can the politicians raise taxes to cover the shortfall? The answer is no. The Government Accountability Office estimates that federal taxes would have to double in order to do the job. Can you afford to double your taxes? Could you afford to pay $440,000 in government debts, even if you had two decades to do it?
Would massively higher taxes even work? The answer is no. Higher taxes don't necessarily result in higher revenues to the government. Higher taxes always lead to increased tax avoidance, a decreased incentive to work and invest, and fewer dollars available to capital markets. The result can be less revenue rather than more.
Can we grow our way out of the problem? The answer is again no. The Government Accountability Office estimates (Page 11) the economy would have to grow at a double digit rate for the next 75 years!, but . . .
In the real world our economic growth is only in the low single digits, and even this rate of growth may be hard to sustain as the weight of rising government expenditures takes more and more rescources from the productive economy.
Indeed, the current debt estimate of $53.3 trillion already takes economic growth into account. If the rate of growth should prove lower than expected then the real size of the unfunded liabilites will be even higher. Those who look to economic growth to magically cure this problem are whistling past the graveyard.
What about benefit cuts for Medicare and Social Security? This might help the government balance its books, but at the cost of breaking government promises and pushing expenses back on the elderly.
What about borrowing? Can the politicians borrow their way out of this mess? Alas, no. Moody, the credit rating service, has already issued a warning that the federal government's credit rating will be lowered if doesn't reduce its debt burden. Practically speaking, a lower credit rating means higher interest rates on federal government debt. And that means more and more of your taxes will go to pay the interest on that debt -- making BOTH the inevitable tax increases and benefit cuts more painful.
Meanwhile, the politicians continue to run deficits year after year, in spite of the looming financial crisis. More debt means more interest charges. Interest payments will already consume $272 billion in 2008 (Page 56). This means that nearly one dollar out of every four you pay in personal income taxes will go to these interest payments. (The personal income tax is expected to bring in $1.2 trillion in 2008 [Page 30]).
One sure way to improve things would be to . . .
Cut government spending now
Stop running deficits now
Start paying off the government debt now
And thereby reduce what we will owe in future interest payments
It's time to stop whistling past the graveyard. It's time to start facing facts, which means we must start cutting government spending, now -- Downsize DC! Please use the form below to send Congress a message. Make Congress aware that you're aware of the government's dire financial plight. Tell them you want reduced spending now, a balanced budget now, and debt retirement, starting now.
Sending a message is easy. You can write as much or as little as you want. And we start with a brief sentence or two for you. We do this so that . . .
The most important point of this campaign is not lost on the Congressional office.
No one can hijack our system for a purpose inconsistent with Downsizing DC.
But you can still personalize the rest of your message — explain why you were motivated to send this message, or what you believe is the most compelling argument in support of your position.
Are these messages read even with so many folks sending a common first line? You bet they are! Congress cannot afford not to pay attention. And many DC Downsizers get responses from their Congressmen. If you receive a letter, feel free to share it with us at comments@DownsizeDC.org.
If you've used our Educate the Powerful SystemSM before just enter your user email address and password, and hit GO. You'll be taken to a screen where you can add your own comments to the message to your elected representatives.
If you're using our Educate the Powerful SystemSM for the first time, please fill out the form for new users. This information is used to direct your message to the correct Senators. Please provide your own password. Do not let the system create one for you. Remember your password. It will allow you to use our system easily in the future for other issues.
Your Letter to Congress
Below is the text of the letter we will send on your behalf...
I am aware that the federal government has future unfunded liabilities estimated at $53 trillion. Please stop ignoring this problem. Please start reducing spending now. Balance the budget now. And start retiring the debt now so you can stop spending so much of my tax money on interest charges. Your personal comments here.
https://secure.downsizedc.org/etp/campaigns/89
Sort By
- +1 Dan D May 31, 2009 20:22:23
And the mindless will follow the government over the cliff of public health care. They believe the lie that it will be free. If we let them pass it, only the political elite will get the type of care we enjoy today.
About Me
Recent Posts
Hot on SodaHead
