Tuesday, April 10, 2007

America, in 2050: Land of the thief. home of the bureaucrat

To the left-wing critics of American health, education and poverty rates, a strong message needs
to be drilled into their skulls - America is not an example of the failures of capitalism. It is not capitalist.

And things will only get worse. Is this not pure textbook socialism that is heading America's way ?

The current laws, as written, have put the U.S. on the road to France. The primary culprit is our programs for retirees.

According to the latest long-run outlook of the Congressional Budget Office, government spending may take up fully 50 percent of GDP by 2050.

Yet revenue will increase tremendously over the same time period. Revenue relative to GDP, currently a smidgen more than 18 percent, will climb to 23.7 percent by 2050 and extrapolate out to a whopping 27.5 percent by 2075. A spending binge is coming, and a good chunk of the revenue needed to pay for it is coming as well.


Why the big climb in revenue? There are three reasons. First, current law calls for the expiration of the Bush tax cuts in 2010. Second, the Alternative Minimum Tax, which isn't adjusted for inflation, sucks in more and more revenue over time. Finally, as the economy grows in real terms, more individuals get thrust into the top tax bracket.